Fed’s Preferred Core Inflation Gauge Rose at Brisk Pace in March

The Federal Reserve’s preferred gauge of underlying US inflation rose at a brisk pace in March, reinforcing concerns of persistent price pressures that are likely to delay any interest-rate cuts.

The so-called core personal consumption expenditures price index, which strips out the volatile food and energy components, increased 0.3% from the prior month, data out Friday showed. From a year ago, it advanced 2.8%.

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The overall PCE price measure also rose 0.3% from February and 2.7% from the prior year.

Inflation-adjusted consumer spending climbed a larger-than-forecast 0.5%, the biggest gain this year.

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Faster inflation in the first quarter, combined with steady household spending, will likely persuade Fed policymakers to refrain from lowering interest rates — if at all — until later this year. Officials meeting next week are expected to hold borrowing costs at a two-decade high.