The data suggests more benign inflation compared to the start of the year, but the indicator shows it is still above the Fed's target - the latest sign that crushing inflation will be a rocky process.
Meanwhile, core PCE (which excludes food and energy prices) rose 0.3% compared to 0.5% in January. Over the past year, it came in at 2.8%, the lowest in three years.
February's increases compare to much cooler readings seen at the end of 2023, which showed the index flat or barely rising.
Fed officials want to make sure inflation is moving toward its 2% target before lowering interest rates. A series of inflation data for February shows the Fed needs more proof that is the case.
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