Fed’s Preferred Inflation Gauge Tops Estimates as Price Stability Progress Stall

The Federal Reserve’s preferred inflation gauge surged at a higher-than-expected pace, highlighting the persistent struggle to return inflation to the central bank’s 2 percent target. According to the Bureau of Economic Analysis (BEA), the personal consumption expenditure (PCE) price index rose to 2.7 percent in March, up from 2.5 percent in February. This also came in higher than the consensus estimate of 2.6 percent. PCE rose 0.3 percent monthly, unchanged from the previous month and in line with market expectations. Core PCE, which strips the volatile energy and food sectors, was unchanged at 2.8 percent year-over-year. This topped economists’ expectations of 2.6 percent. On a month-over-month basis, core PCE rose 0.3 percent....