A measure of inflation favored by the Federal Reserve rose 5.2% annually in March, slightly below forecast, the Bureau of Economic Analysis reported on Friday.
The core personal consumption expenditures index, which strips out often volatile food and energy costs, had increased at an annual rate of 5.4% in February. Economists had forecast a gain of 5.3%.
That is the measure Fed officials use to track the rate of inflation.
Overall, the index rose 0.9% in March.
The
monthly dip will not alter the current narrative of runaway prices,
which the Fed is seeking to tame with an aggressive round of monetary
tightening. And it does little to change expectations that the central
bank will hike interest rates by 50 basis points next week, double the
amount it raised rates in March.
