A key measure of consumer prices showed inflation accelerating in January as spending, income, and saving surged.
The personal consumption expenditure price index jumped 0.6 percent in January compared with a month earlier. The prior month’s inflation rate was revised up from 0.1 percent to 0.2 percent.
Compared with a year ago, the personal consumption expenditure (PCE) price index was up 5.4 percent. The 12-month gain for December was revised up from five percent to 5.3 percent.
Economists had expected a much milder increase. The median forecast was for a 0.4 percent price increase month-to-month and a 4.9 percent increase for the year.
The annual and monthly figures indicate that inflation has accelerated. The revisions indicate that the apparent reprieve from inflation at the end of last year was less substantial than it appeared. The comparison with estimates…
