Data published Thursday by the U.S. Department of Commerce showed that U.S. consumer prices rose in line with expectations in March, according to its closely watched personal consumption expenditures (PCE) report.
The PCE price index increased by 0.7% during the month, following a rise of 0.4% in February. Economists had forecast a 0.7% gain.
On an annual basis, PCE inflation accelerated to 3.5% in March from 2.8% the previous month, matching consensus estimates.
Core PCE, which excludes food and energy, rose 0.3% in March after a 0.4% increase in February, also in line with forecasts.
Year-over-year, core inflation edged up to 3.2% from 3.0%, aligning with expectations for a modest acceleration.
These figures—considered the Federal Reserve’s preferred gauge of inflation—were released as part of the broader report on personal income and spending.
The same report showed that personal income rose 0.6% in March after being flat in February, while consumer spending climbed 0.9%, building on a 0.6% increase the previous month.