WASHINGTON (dpa-AFX) - Consumer prices in the U.S. increased in line with economist estimates in the month of January, according to a report released by the Commerce Department on Friday.
The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.3 percent in January after climbing by 0.4 in December. Economists had expected prices to rise by 0.3 percent.
The report also said the annual rate of growth by the PCE price index slipped to 2.8 percent in January from 2.9 percent in December. The annual rate of growth was expected to remain unchanged.
The monthly increase by the PCE price index came as prices for services grew by 0.4 percent, while prices for goods were unchanged.
Excluding food and energy prices, the core PCE price index climbed by 0.4 percent in January, matching the increase seen in December as well as economist estimates.
Meanwhile, the annual rate of growth by the core PCE price index ticked up to 3.1 percent in January from 3.0 percent in December. Economists had the pace of growth to remain unchanged.
'Inflation remained elevated in January, and the war with Iran will add at least 0.3ppts to headline inflation in March through gasoline prices alone,' said Michael Pearce, Chief U.S. Economist at Oxford Economics.
He added, 'Some of that will bleed through to core inflation in the coming months, but we still think core inflation will ease this year, as housing disinflation continues and core goods inflation eases as tariff impacts fade.'
The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending.
The report said personal income climbed by 0.4 percent in January after rising by 0.3 percent in December. Economists had expected personal income to increase by 0.5 percent.
Disposable personal income, or personal income less personal current taxes, jumped by 0.9 percent in January after growing by 0.3 percent in December.
Personal spending also increased by 0.4 percent in January, matching the growth seen in December. Economists had expected personal spending to rise by 0.3 percent.
The Commerce Department said personal saving as a percentage of disposable personal income shot up to 4.5 percent in January from 4.0 percent in December.
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