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%.
![](https://en.econreporter.com/wp-content/uploads/2023/04/PCECore.png)
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.
![](https://en.econreporter.com/wp-content/uploads/2023/04/PCEsubindexMoM.png)
The report also indicates that the year-on-year inflation rate for energy goods and services dropped to 5.1%, lowest since earlier 2021.
![](https://en.econreporter.com/wp-content/uploads/2023/04/PCESubindex.png)
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.
![](https://en.econreporter.com/wp-content/uploads/2023/04/FedratehikesoddendofMarch-870x1024.png)
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