Core Inflation Hits Two-Year High in January, War Threatens More Spikes

• The Federal Reserve's closely watched inflation gauge (PCE index) showed prices rose 2.8% year-over-year in January.
• Core prices, excluding volatile food and energy, increased 3.1% year-over-year, the highest in nearly two years.
• Monthly core prices jumped 0.4% for the second consecutive month, a pace exceeding the Fed's 2% annual target.
• The Iran war, starting Feb 28, has already caused oil prices to soar over 40% and gas prices to jump, forecasting further inflation spikes.
• Consumer spending and incomes both rose 0.4% in January, indicating steady growth despite rising prices.