US inflation gauge increases during January

The news: The US core personal consumption expenditures price index (Core PCE) rose during January, at the fastest rate in almost a year.

The numbers: Core PCE, which removes the more volatile food and energy components, increased 0.4% from December. From a year ago, it advanced 2.8%.

The context: Economists consider core PCE to be a better gauge of underlying inflation than the overall index. This is the final PCE report that US Federal Reserve officials will see before they meet again in late March for their next rate decision, which is widely expected to see rates held steady by the central bank. Markets are anticipating US rate cuts to begin from June this year.