Underlying US inflation remained brisk last month, reinforcing the case for another Federal Reserve interest-rate hike next week.
The personal consumption expenditures price index excluding food and energy, one of the Fed’s preferred inflation gauges rose 0.3% in March for a second month. Compared with a year ago, the measure was up 4.6%.
The overall PCE price index increased 0.1% from the prior month, restrained by a decline in energy costs, Commerce Department data showed Friday.
While a strong labor market and excess savings have provided households with the wherewithal to spend, consumers are beginning to lose steam. Personal consumption expenditures, adjusted for prices, were unchanged last month after a downwardly revised 0.2% drop in February.
The core PCE measure was in line with the median forecast of a 0.3% advance in a Bloomberg survey of economists. Real spending was projected to decline 0.1%.