A measure that the central bank focuses on to gauge inflation increased in March, likely giving push to central bank’s intention to increase interest rates by 50-basis points in May.
The core personal consumption expenditures price index measures prices that consumers pay across a variety of items and accounts for how behavior of consumers changes in response to dynamics in the market. It is increased 5.2% from on an annual basis, as per the data released by the Bureau of Economic Analysis.
March’s inflation gauge was less than the 5.3% estimates according to Dow Jones.
Andrew Hunter, senior U.S. economist at Capital Economics said, “The bigger story from today’s data releases was further evidence that inflation is starting to ease.”