The Fed’s preferred inflation gauge just moved in the wrong direction

Inflation remained stubbornly high last month, but it hasn’t stopped Americans from spending.

The Personal Consumption Expenditures price index — a closely watched inflation gauge favored by the Federal Reserve — accelerated to 2.7% for the year ended in March, according to data released Friday by the Commerce Department.

That rate was above economists’ expectations for a 2.6% gain and landed above February’s reading of 2.5%.

On a monthly basis, prices rose 0.3%, unchanged from the pace seen in February.

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