Battle of the Inflation Bulge

Just when you thought inflation was conquered, the next government report pulls the economy back in. That’s what the economists who thought the end of inflation was nigh must be thinking in frustration after Friday’s report on the personal-consumption expenditure price index.

This measure of inflation, a favorite of the Federal Reserve, accelerated in January at the fastest monthly pace since June. The PCE index is worth following because it offers a view of price changes from business sources and takes into account the substitution of goods and services in a way the consumer-price index doesn’t.