(BEA) The US key inflation gauge, the PCE price index, rose by 6.4% in February from the prior year, reflecting rising costs of goods and services.
Energy prices rose by 25.7%, while prices of food were up by 8.0%. Excluding food and energy, the inflation gauge was up by 5.4% from the prior year.
The rise in the inflation gauge happens even as personal incomes improved by 0.5% or $101.5 billion. The disposable personal incomes rose by 0.4%, or $76.1 billion, while the personal consumption expenditures were up by 0.2%, or $34.9 billion.
Compared to the prior month, the PCE price index was up by 0.6%. The index rose by 0.4%, excluding food and energy.
The personal outlays increased by $37.3 billion in February. The personal savings was $1.15 trillion, with the personal savings rate at 6.3%.
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