by William J. Luther
The American Institute for Economic Research
Inflation picked up in January, according to the latest data from the Bureau of Economic Analysis (BEA). The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew at a continuously compounding annual rate of 4.1 percent in the first month of the year. The PCEPI has grown at an annualized rate of 1.8 percent over the last three months and 2.5 percent over the last six months. Prices today are 8.4 percentage points higher than they would have been had they grown at an annualized rate of 2.0 percent since January 2020.
[…] Figure 1. Headline and Core Personal Consumption Expenditures Price Index with 2-percent Trend, January 2020 – January 2024
Core inflation, which excludes volatile food and energy prices, also increased. Core PCEPI grew at a continuously compounding annual rate of 5.0 percent in January. It has grown at an annualized rate of 2.6 percent over the last three months and 2.5 percent over the last six months.