Underlying Inflation Was Stubborn in January by Fed’s Preferred Metric

PCE inflation in January was 2.8% year over year. The numbers predate the Iran conflict.

Fed's favored inflation gauge remained stubbornly high in January as consumer price pressures persist

The Commerce Department on Friday released the January 2026 PCE inflation report, which showed the Federal Reserve's preferred inflation gauge remained stubbornly high for consumers.

CPI Report Live: Here's Where Inflation Rose and Fell at the Grocery Store in February

Follow along with Investopedia's live coverage of Friday's inflation report from the Bureau of Labor Statistics.

Here's the inflation breakdown for February 2026 — in one chart

The consumer price index was rose 2.4% in February 2026, above policymakers' target, economists said. War in Iran complicates the picture.

Key Inflation Gauge Rose In January—As Interest Rate Cut Hopes Dwindle

The Federal Reserve’s favored inflation gauge was worse than what Wall Street forecast in January, according to federal data released Friday, as the Iran war—boosting energy prices and fears of rising inflation—has shelved hopes of an interest rate cut from the central bank.

VIEW PCE inflation report meets expectations, GDP is soft; markets rally

The U.S. Commerce Department said on Friday its Personal Consumption Expenditures Price Index (PCE) rose largely in line with expectations in January, the latest sign that inflation remained relatively well behaved ahead of the war with Iran that began last month.

A sticky reading on Fed's favored inflation measure should keep central bank on hold

A reading on the Federal Reserve's preferred inflation gauge released Friday for January, before the Iran war, showed inflation remained sticky, reinforcing the case for the central bank to hold interest rates steady for now.