The Federal Reserve's preferred gauge of inflation over the past 12 months moved lower in January, marking modest progress toward the central bank's 2% target, the Commerce Department said Friday.

The personal-consumption-expenditures price index increased by 0.3% month over month in January, putting its 12-month rise at 2.5%. That is down from 2.6% in December.
The core PCE price index, which excludes volatile food and energy costs increased by 0.3% last month as well. Its 12-month increase declined to 2.6%, from a revised 2.9% a month earlier.
Both numbers landed close to Wall Street analysts' expectations. Economists can forecast PCE inflation accurately based on data released earlier in the month.
Source: Bloomberg