A key US inflation gauge closely monitored by the Federal Reserve slowed in February in an encouraging sign that the central bank's interest rate increases are helping to ease price pressures.
The Personal Consumption Expenditures Price Index, known as the PCE, rose 0.3 per cent from January to February, a slowdown from a 0.6 per cent increase from December to January, data released by the Commerce Department on Friday showed. On an annual basis, consumer prices rose 5 per cent, down from 5.3 per cent in January.
Excluding food and energy costs, prices rose by 0.3 per cent in February.
Consumer spending rose 0.2 per cent last month. January's data was revised slightly higher to show spending surged 2 per cent instead of 1.8 per cent as previously reported.
US stocks gained to close out a strong quarter as hopes grow that signs of a cooling economy indicate a less aggressive monetary policy stance by the Fed.
The Nasdaq had climbed 1.44 per cent on the day when trading closed as it recorded its strongest quarter since June 2020. The Dow Jones gained 415 points, or 1.26 per cent, and the Nasdaq Composite climbed 1.74 per cent.
"We are making progress in the fight against inflation," President Joe Biden said in a statement.
Even though Friday's report shows signs that inflation is cooling, annual year-on-year price increases are well above the Fed's long-term 2 per cent goal. Revised forecasts from the central bank released last week showed they estimate PCE inflation to fall to 3.3 per cent by the end of the year.
The Fed has raised interest rates nine times in a year-long fight to the range of 4.75 per cent and 5 per cent to tackle the soaring costs of goods in the US.
Policymakers' plans to issue more aggressive rate raises were complicated by the banking turmoil that stemmed from the collapse of Silicon Valley Bank and Signature Bank. Fed Chair Jerome Powell told reporters that the banking turmoil will likely result in tighter lending conditions as a sort-of interest-rate increase itself.
The Fed prefers relying on PCE data instead of the Consumer Price Index because it provides a more comprehensive understanding of how households react to rising prices.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Trump v Khan
2016: Feud begins after Khan criticised Trump’s proposed Muslim travel ban to US
2017: Trump criticises Khan’s ‘no reason to be alarmed’ response to London Bridge terror attacks
2019: Trump calls Khan a “stone cold loser” before first state visit
2019: Trump tweets about “Khan’s Londonistan”, calling him “a national disgrace”
2022: Khan’s office attributes rise in Islamophobic abuse against the major to hostility stoked during Trump’s presidency
July 2025 During a golfing trip to Scotland, Trump calls Khan “a nasty person”
Sept 2025 Trump blames Khan for London’s “stabbings and the dirt and the filth”.
Dec 2025 Trump suggests migrants got Khan elected, calls him a “horrible, vicious, disgusting mayor”
Who is Mohammed Al Halbousi?
The new speaker of Iraq’s parliament Mohammed Al Halbousi is the youngest person ever to serve in the role.
The 37-year-old was born in Al Garmah in Anbar and studied civil engineering in Baghdad before going into business. His development company Al Hadeed undertook reconstruction contracts rebuilding parts of Fallujah’s infrastructure.
He entered parliament in 2014 and served as a member of the human rights and finance committees until 2017. In August last year he was appointed governor of Anbar, a role in which he has struggled to secure funding to provide services in the war-damaged province and to secure the withdrawal of Shia militias. He relinquished the post when he was sworn in as a member of parliament on September 3.
He is a member of the Al Hal Sunni-based political party and the Sunni-led Coalition of Iraqi Forces, which is Iraq’s largest Sunni alliance with 37 seats from the May 12 election.
He maintains good relations with former Prime Minister Nouri Al Maliki’s State of Law Coaliton, Hadi Al Amiri’s Badr Organisation and Iranian officials.
