Closely watched readings on U.S. consumer price inflation increased in line with economist estimates in the month of January, according to a report released by the Commerce Department on Friday.
The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.3 percent in January, matching the increase seen in December.
The monthly price growth came as prices for goods climbed by 0.5 percent in January after inching up by 0.1 percent in December, while prices for services rose by 0.2 percent in January after increasing by 0.4 percent in December.
The annual rate of growth by the PCE price index slowed to 2.5 percent in January from 2.6 percent in December, which also matched expectations.
The report said prices for services in January surged by 3.4 percent compared to the same month a year ago, although that represents a slowdown from the 3.9 percent spike in December.
Prices for goods increased by 0.6 percent year-over-year in January after edging down by 0.1 percent in the previous month.
Excluding a jump by energy prices and an uptick by food prices, the core PCE price still climbed by 0.3 percent in January after edging up by 0.2 percent in December. The increase by core prices was also in line with estimates.
The annual rate of core PCE price growth slowed to 2.6 percent in January from 2.9 percent in December, which also matched expectations.
The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending.
The Department said personal income grew by 0.9 percent in January after climbing by 0.4 percent in December. Economists had expected personal income to rise by 0.3 percent.
Disposable personal income, or personal income less personal current taxes, also increased by 0.9 percent in January.
Meanwhile, the report said personal spending dipped by 0.2 percent in January after climbing by 0.8 percent in December.
With income jumping and spending falling, personal saving as a percentage of disposable personal surged to 4.6 percent in January from 3.5 percent in December.