A key measure of consumer prices showed inflation accelerating in January as spending, income, and saving surged.
The personal consumption expenditure price index jumped 0.6 percent in January compared with a month earlier, the Commerce Department said Friday. The prior month’s inflation rate was revised up from 0.1 percent to 0.2 percent.
Compared with a year ago, the personal consumption expenditure (PCE) price index was up 5.4 percent. The 12-month gain for December was revised up from five percent to 5.3 percent.
Economists had expected a much milder increase. The median forecast was for a 0.4 percent price increase month-to-month and a 4.9 percent increase for the year.
