The Federal Reserve's favored inflation gauge — called the personal consumption expenditures index, or PCE — rose at a 2.3 percent annual pace last quarter, up from 1.5 percent in the third quarter.
U.S. economy grew 2.8 percent in 2024 - but inflation pressure remains Some economists believe that Trump’s threat of tariffs changed consumer spending at the end of 2024.
Despite the shortfall, however, the economy still grew a healthy 2.8 percent for the full year, compared to 2.9 percent in 2023.
Consumer spending grew at a 4.2 percent pace, the fastest since January-March 2023 and up from 3.7 percent in July-September last year.
Excluding volatile food and energy prices, so-called core PCE inflation was 2.5 percent, up from 2.2 percent in the July-September quarter.
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