Inflation hits Fed’s 2% target, possible prelude to faster rise in U.S. interest rates

• April 30, 2018
• realestate
• Announcements, Business & Markets, Real Estate, Real Estate Finance, Your Real Estate Life

The PCE index, the Federal Reserve’s preferred inflation gauge, rose to 2% year over year from a 1.7% pace in February, hitting the central bank’s target for the first time in a year.

The 12-month increase in the more closely followed core rate of inflation was close behind, rising to 1.9% in March from 1.6% in the prior month.

That’s the biggest yearly gain in the core rate since April 2012.

The PCE index was unchanged in March. The core rate rose 0.2%.

The inflation figures are included in the government’s monthly report on consumer spending. Outlays rose 0.4% last month to mark the first advance since the end of 2017.  Incomes climbed 0.3% in March.

Both figures were in line with Wall Street expectations.