FED'S FAVOURITE MEASURE OF INFLATION FALLS

Janet yellenREUTERS/Jason ReedU.S. Federal Reserve Chairman Janet Yellen carries her own bags to a group photo of the Central Bank Governors and Finance Ministers of G20 countries near the Sydney Opera House and Sydney Harbour Bridge, February 22, 2014.

January core PCE deflator data are out.

The deflator rose 0.1% from the previous month in January, bringing the year-over-year change in the core PCE deflator to 1.1% from December’s 1.2% reading, as expected.

The core PCE deflator is the measure of inflation that the Federal Reserve cites in its communications, and is thus closely followed by Fed watchers.

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