US Prices had risen by a sharp 0.6% in January, based on the so-called PCE index. The yearly increase in prices declined to 5% from 5.3% in the prior month, marking the lowest level in more than a year and a half.
The more closely followed core index also increased 0.3% last month, matching Wall Street’s forecast. The core rate of inflation in the past 12 months slipped to 4.6% from 4.7%.
Senior Federal Reserve officials have signaled they plan to raise interest rates just once more before pausing to determine how much a sharp increase in borrowing costs brings down inflation. The Fed has jacked up a key short-term U.S. rate to a top end of 5%, a remarkably fast acceleration from nearly zero one year ago.
