The latest reading of the Federal Reserve's preferred inflation gauge showed prices rose on a monthly basis but dropped year over year, which should keep the central bank on hold at its next meeting in March.

Inflation rose 2.5% over the year in January compared to 2.6% in December, marking the first decrease in four months.

Consumer spending, the primary driver of the U.S. economy, saw its biggest drop in four years despite a slight rise in personal income.

Inflation in the Federal Reserve’s preferred price gauge eased in January after making steady increases throughout the fall. The personal consumption expenditures (PCE) price index increased by

The Federal Reserve’s preferred inflation gauge cooled as expected in January, providing a hopeful data point to price-weary Americans.

The Federal Reserve's preferred inflation gauge eased modestly last month, but personal-spending figures showed one of the biggest pullbacks in more than a year, suggesting further weakness in the domestic economy.

Inflation pressures continued to moderate in January, which may give the Federal Reserve reason to lower interest rates again later this year. The personal consumption expenditures, or PCE, price index,

The Federal Reserve's preferred inflation metric slowed last month, as officials suggest they are content to keep interest rates steady amid policy uncertainty. The Personal Consumption Expenditures (PCE) Price Index rose 0.