WASHINGTON — Personal income rose 0.3% in February and consumption increased 0.7%, above economists’ estimates and the largest increase in four months, as energy costs increased, the Commerce Department reported Monday.
Core personal consumption expenditure, which excludes food and energy costs and is the Federal Reserve’s preferred measure of inflation, increased 0.9% for the 12 months ending in February, following an 0.8% increase for the year ended in January. Energy goods and services gained 11.0% over the 12-month period.
Energy consumption costs have accelerated over the past few months. In February, energy goods and services jumped 3.5% from January.
Economists expected consumption to increase 0.6% in February and income to gain 0.4%, according to the median estimate from Thomson Reuters.
