Fed-Favored Inflation Gauge Rises by Less Than Forecast, Spending Moderates
- Core PCE index climbed 0.3% last month; January revised down
- Services inflation minus energy, housing slowed in February
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A key gauge of US inflation rose last month by less than expected and consumer spending stabilized, suggesting the Federal Reserve may be close to ending its most aggressive cycle of interest-rate hikes in decades.
Excluding food and energy, the Fed’s preferred inflation gauge — the personal consumption expenditures price index — rose 0.3% in February after the prior month was revised down slightly. The overall PCE climbed by the same amount, Commerce Department data showed Friday.