Fed's Preferred Inflation Gauge Hits 3.5% in March, Highest in Nearly Three Years

According to the U.S. Department of Commerce, the PCE price index, the Federal Reserve’s preferred inflation gauge, rose to 3.5% year-over-year in March, the highest level in nearly three years. The monthly rate increased to 0.7% in March from 0.4% in February, with the annual rate jumping from 2.8% to 3.5%, marking the fastest pace since May 2023. Rising gasoline prices drove the acceleration.