An inflation measure closely watched by the Federal Reserve rose in December after declining the previous month as high prices continued to weigh on millions of Americans.

The personal consumption expenditures (PCE) index showed that consumer prices rose 0.2% from the previous month, according to the Labor Department. On an annual basis, prices climbed 2.6% – unchanged from the previous month.

The figures were both in line with estimates from Refintiv economists.

In a sign the Fed's fight against inflation is slowly making progress, core prices – which strip out the more volatile measurements of food and energy – climbed 0.2% from the previous month and 2.9% from the previous year. It marked the best reading for core inflation since 2021.

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