Fed's inflation indicator eases to 2.8% in January

By Gokhan Ergocun

ISTANBUL (AA) - The US Federal Reserve's preferred inflation indicator eased in January on an annual basis, according to Commerce Department figures released Thursday.

The core personal consumption expenditures (PCE) price index rose 2.8% annually in January, easing from 2.9% in December.

On a monthly basis, however, the index rose 0.4% in January, from a 0.1% monthly increase in December.

In January, food prices increased 0.5% on a monthly basis and energy prices rose 0.3%, compared to the previous month.

Food prices were up 0.5%, while energy prices decreased 1.5% monthly in January. On a yearly basis, food prices rose by 1.4% and energy fell by 4.9%.

The PCE price index, which includes food and energy prices, annually rose 2.4% in January, following a 2.6% year-on-year gain in December.

That index, on a monthly basis, rose 0.3% in January, following a 0.1% month-on-month increase in December.