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Fed’s Preferred Inflation Measure Reaches Fastest Pace Since 1983
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The Federal Reserve’s preferred measure of inflation hit a new 38-year high in January, as strong consumer demand and pandemic-related supply constraints propelled price gains.
The Commerce Department’s personal-consumption-expenditures index measure of core inflation, which excludes volatile food and energy costs, rose 5.2% in January from a year ago, up from 4.9% in December. That marks the sharpest 12-month increase since April 1983.
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