by John Carney
Breitbart.com
Inflation continued its steady rise in February, the latest indication that the Federal Reserve’s efforts to restore price stability have faltered.
The personal consumption expenditures (PCE) price index rose 0.3 percent for the month in February, matching the January pace. If prices rose at that pace over the next twelve months, inflation would rise to four percent. Compared with a year ago, the PCE price index is up 2.5 percent.
The Fed uses the PCE price index for its official target of two percent inflation. It also uses the index in the economic projections of Fed officials that are released at every other meeting of the Fed’s monetary policy committee.
The core PCE price index, which strips out volatile food and energy prices, rose 0.4 percent from the previous month.