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The Fed’s Preferred Inflation Gauge Sped Back Up



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There was a moment, late last year, when everything seemed to be going according to the Federal Reserve’s plan: inflation was slowing, consumers were pulling back and the overheated economy was gently cooling down.But a spate of fresh data, including worrying figures released Friday, make it clear that the road ahead is likely to be bumpier and more treacherous than expected.Inflation remains stubbornly elevated and unexpectedly picked up in January, a fresh reading of the Fed’s preferred index showed, underscoring the daunting challenge facing central bankers as they try to wrestle price increases back to a normal pace.After six months of more or less consistently cooling down, the Personal Consumption Expenditures price measure climbed 5.4 percent in January from a ye …

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