The Fed's favored inflation measure rose last month, fueled by higher energy costs WASHINGTON: The US central bank's favoured measure of inflation edged higher last month on the back of rising fuel prices, according to government data published on Friday , but a metric stripping out volatile food and energy prices continued to ease.
The personal consumption expenditures price index rose at an annual rate of 2.5 per cent in February, up 0.1 percentage points from a month earlier, the Department of Commerce said in a statement. Recent data has led some Fed officials to question policymakers' recent prediction of three interest rate cuts this year, as the US central bank pivots from tightening to loosening monetary policy.
"It supports our view that the Fed waits to at least June to start cutting rates, with odds of a July start rising," she added.