| A key gauge of US inflation rose last month by less than expected and consumer spending stabilised, suggesting the Federal Reserve may be close to ending its most aggressive cycle of interest-rate hikes in decades.— the personal consumption expenditures price index — rose 0.3 per cent in February after the prior month was revised down slightly. The overall PCE climbed by the same amount, Commerce Department data showed.Consumer spending, adjusted for prices, fell 0.
The core PCE measure came in slightly below the median estimate of 0.4 per cent in a Bloomberg survey of economists.While the step-down in inflation is welcome, price growth remains far too high for the Fed, and they must balance that with maintaining financial stability. One month “in a more helpful direction is not something that really indicates a sustained change”, Boston Fed president Susan Collins said on Bloomberg Television. “We still do have more work to do and more to see to know that inflation is really on a sustained downward path.”