The personal consumption expenditures (PCE) price index rose 0.3 percent in March, holding steady from February.
The PCE price index rose 2.7 percent over the past year, around 0.1 percentage points higher than experts expected.
But last month was also the first time since December that Americans had more money to spend after inflation and taxes. Consumer spending rose 0.8 percent for the second consecutive month and disposable incomes also rose by 0.5 percent.
The March inflation report likely cements expectations that the Fed will maintain its baseline interest rate range of 5.25 percent to 5.5 percent at its policy meeting next week.
Although the central bank signaled a series of rate cuts at the end of 2023, Fed officials have held off on easing rates amid a run of strong economic data in 2024.
Job growth has blown past expectations for four straight months, and the unemployment rate has remained below 4 percent for the longest stretch since the late 1960s.
The Hill’s Sylvan Lane has more here.
