Federal Reserve’s Key Inflation Measure Remains Above Target

In addition to inflation, the bureau reported that personal income rose 0.4 percent, below the market forecast of 0.5 percent.

Shoppers at a grocery store in Centreville, Va. on Nov. 2, 2025. Madalina Kilroy/The Epoch Times

The Federal Reserve’s favored inflation metric cooled slightly at the start of 2026, but the widely watched gauge stayed firmly above the central bank’s 2 percent target.

January’s annual Personal Consumption Expenditure (PCE) Price Index eased to 2.8 percent from 2.9 percent in December, according to Bureau of Economic Analysis data released on March 13.