Inflation Shows Signs of Easing But Path Remains Bumpy
• Rising prices continued in January, but inflation is on a downward, albeit bumpy, path toward the Fed’s 2% target • Core PCE index, the Fed's preferred inflation gauge, edged down to 2.8% annually in January from 2.9% in December • Prices rose 0.3% monthly in January, the fastest pace in months, highlighting choppiness in the battle against inflation • Consumer spending fell 0.1% in January adjusted for inflation, as households pulled back on goods and some services • An uptick in services inflation could be due to one-time "price resets", but reinforces the Fed's cautious stance on rate cuts