Inflation resumed its upward trend in March, rising by 2.7% compared to last year, an increase from the 2.5% recorded in February. However, it remained stable compared to the previous month at 0.3%. These figures were revealed by the PCE index, the preferred inflation gauge of the Federal Reserve (Fed), which was released this Friday.
The Commerce Department report, which was reviewed by AFP, further explained that household income rose by 0.5% in March compared to the 0.3% increase in February. Meanwhile, consumer spending increased by 0.8%, the same as the previous month.
"PCE inflation was above the average forecast of 2.6% established in a survey among economists by the specialized media Dow Jones Newswires and The Wall Street Journal. Much of the increase came from the services sector, which increased by 4.0%," AFP explained.
Energy prices were one of the most unstable and increased by 2.6% in one year. Meanwhile, food prices increased by 1.5%.
While inflation has fallen sharply since 2022, it remains a challenge, reducing the likelihood of an interest rate cut by the Fed mid-year.
