Inflation ticked higher in February as consumer spending soared

Inflation ticked up in February, according to new federal data released Friday.

The personal consumption expenditures (PCE) price index, the Federal Reserve's preferred way to measure inflation, rose 0.3 percent in February. The annual inflation rate rose to 2.5 percent in February, up 0.1 percentage points from January.

“Core” inflation, which excludes volatile food and energy prices, clocked in at 0.3 percent in February after rising 0.4 percent in January. Year-over-year...