A closely watched inflation report shows prices are still rising, but not faster than economists expected.

And that news helped lift financial markets, even as economic growth slows.

I'm Kathy Fedke, and this is real estate news for investors.

This is Real Estate News with Kathy Fedke.

According to a new report from the U.S. Commerce Department, the Personal Consumption Expenditures Index, or PCE, rose 0.3% in January, matching forecasts.

The core PCE index, which excludes food and energy, and as the Federal Reserve's

preferred inflation gauge, increased 0.4% for the month, up 3.1% compared to a year ago. While

inflation remains above the Fed's 2% target, the fact that the numbers came in right where

economists expected was enough to calm the markets.

Stocks rallied after the report. The Dow Jones gained about 0.6%. The S&P 500 rose 0.8%, and the NASDAQ

climbed roughly 0.9%, while treasury yields moved lower as investors reacted to the latest economic

signals. But the report also revealed

a potential concern for the broader economy. The government revised fourth quarter GDP growth

sharply downward to just 0.7%, about half of what economists had previously expected. Analysts say

weaker exports, softer consumer

spending, and reduced government spending all contributed to slower growth. Some economists say

the mixed data creates a complicated picture for the Federal Reserve. Inflation remains stubbornly

above target, yet the economy appears to be losing momentum.

Personal income did rise slightly, and the personal savings rate climbed to a six-month high,

suggesting consumers may be becoming more cautious with their spending.

Meanwhile, geopolitical risks are adding another layer of uncertainty.

Rising oil prices linked to the conflict with

...