Inflation has eased significantly from its highs in mid-2022 but remains somewhat elevated relative to our 2% longer-run goal.

Total PCE prices rose 2.8% over the 12 months ending in February; core PCE prices rose 3.0%.

Elevated readings largely reflect inflation in the goods sector, boosted by the effects of tariffs.

Near-term measures of inflation expectations have risen in recent weeks, likely reflecting the substantial rise in oil prices caused by supply disruptions in the Middle East.

Most measures of longer-term expectations remain consistent with our 2% inflation goal.