US inflation eases further in February as energy prices drop, PCE index shows

Inflation in the US showed further signs of easing as the yearly growth of core PCE price index slowed to 4.6% in February, while the headline number increased by 5%.

Energy prices showed a 0.44% monthly decrease, while the price levels for goods, services and food all rised at a slower rate than in January.

The report also indicates that the year-on-year inflation rate for energy goods and services dropped to 5.1%, lowest since earlier 2021.

The deceleration of inflation likely takes some pressure to raise rate further off the Fed. The Fed Funds futures pricing indicated that there is a 52.3% chance the central bank will hold its benchmark rate unchanged at its next meeting on May 2-3, according to CME Group’s data.