The Federal Reserve’s preferred inflation gauge remained elevated in December as price pressures continued to pose a challenge for consumers.

The Commerce Department on Friday reported that the personal consumption expenditures (PCE) index rose 0.4% in December on a monthly basis and is up 2.9% from a year ago. Those figures were both slightly hotter than the estimate of LSEG economists, who predicted 0.3% and 2.8%, respectively.

Core PCE, which excludes volatile measurements of food and energy prices, was up 0.4% on a monthly basis and rose 3% year over year. Both figures were hotter than the expectations of economists polled by LSEG, who estimated the gauges would rise 0.3% and 2.9%, respectively.

Federal Reserve policymakers are focusing on the PCE headline figure as they try to bring inflation back to their long-run target of 2%, though they view core data as a better indicator of inflation.

Headline PCE has trended up to 2.9% after readings of 2.8% in November and 2.7% in October. Core PCE readings were 2.8% or 2.9% dating back to May before it reached 3% in December.

This is a developing story about the December PCE inflation report. Please check back for updates.

The U.S. economy grew at a much slower than expected pace in the fourth quarter, according to new data released on Wednesday.

The Commerce Department’s Bureau of Economic Analysis (BEA) released its advance estimate for fourth quarter gross domestic product (GDP), which found the U.S. economy grew at an annual rate of 1.4% in the fourth quarter, which runs from October through December.

Economists surveyed by LSEG had expected the economy to grow at a 3% rate in the quarter. The fourth quarter’s 1.4% growth was slower than the 4.4% GDP growth recorded in the third quarter.

This is a developing story. Please check back for updates.

It said it plans to open four new coffee shops in Wales this year

Costa Coffee is expanding its presence in Wales with new outlets this year as part of a £1.5m investment creating 40 new jobs. The first has seen the opening of a new store at a Sainsbury’s supermarket in Newport, creating seven jobs.

At least three further stores are set to open in the coming months, including two new drive thru restaurants at Border Retail Park in Wrexham annd Buttington Cross, Welshpool. In the summer Costa will also open a new store at at Sainsbury’s supermarket in Rhyl. It is also investing £1m to upgrade nine existing stores in the first half of 2026.

Matthew Cyprus, Costa Coffee’s regional operations director for south west of England, Wales and Midlands, said: “Wales remains a key growth region for Costa Coffee, and we’re proud to be continuing our investment across South, Mid and North Wales this year.

“The opening of our Costa Coffee store in Newport Sainsbury’s is the first of several planned for 2026, as we expand our footprint and bring Costa Coffee to even more communities. These new stores will not only provide greater choice and convenience for customers, but also create valuable job opportunities locally.”

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Costa has announced that it will increase pay from April for over 16,000 team members in its 1,500 UK company-owned stores. This is the seventh pay increase for store team members since 2021.

The £7m investment increases the pay for baristas to £13.12 per hour, up from £12.60 per hour. The company’s more experienced staff, who are team leaders and coffee trainers, will see their hourly pay increase from between £12.93 and £13.43 to £13.75. Costa Coffee Store managers will see an overall 3% pay increase.

Costa Coffee’s managing director for Ireland and the UK, Nick Orrin, said: “Our talented baristas and team members are the heart of Costa Coffee, with every drink shaped by their expertise, skill and passion.

“This latest pay uplift reflects our ongoing commitment to recognise, reward and invest in the people who deliver great coffee experiences and daily rituals for our customers across the UK.”

Chancellor Rachel Reeves said: “It’s fantastic to hear that Costa Coffee are recognising and supporting their hard-working staff with this pay increase. Hard work should be rewarded, which is why from April, our increase to the National Living Wage will benefit 2.4 million people, with full-time workers on the National Living Wage being £900 a year better off.”

Founded in London by Italian brothers Sergio and Bruno Costa in 1971, Costa Coffee has a presence in 50 countries globally with more than 4,000 coffee shops, of which 2,700 are in the UK and Ireland.