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A Key Inflation Gauge Is Still Rising, and War Could Make It Worse


A measure of inflation that the Federal Reserve watches closely accelerated again in January, hitting a new 40-year high and speeding up on a monthly basis as food and energy prices climbed sharply.The Personal Consumption Expenditures index, which the Fed targets as it aims for 2 percent annual inflation on average over time, rose 6.1 percent over the past year, the fastest pace of increase since 1982. Prices climbed 0.6 percent in January from December, up from 0.4 percent the prior month.The fresh reminder that inflation remains stubbornly high comes at a tense moment, as Russia’s invasion of Ukraine sends oil and other com …

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