Fed's Preferred Inflation Gauge Seen Jumping in January But Slowing Later in 2022

PCE inflation index, the Fed's preferred measure, expected to show a 0.3% increase in January, the largest gain in 4 months
Core PCE rate seen rising 0.4% in January, almost a year high
Fed views PCE as best inflation measure since it gives less weight to housing and accounts for consumer substitutions
Yearly PCE inflation rate stood at 2.6% in January, could slip to 2.4% but still above Fed 2% target
Fed expects more "bumps" ahead but believes inflation will moderate toward 2% target by end of year