US Fed’s favored inflation measure accelerates, dimming rate cut hopes [Video]

The US central bank’s favored measure of inflation accelerated last month, according to government data published Friday, pushing back the chances of an interest rate cut this summer.

The hotter print is likely to cement the view that inflation, while down sharply since 2022, remains a challenge, and could keep the Federal Reserve on pause as it seeks to battle rising prices.

It also complicates US president Joe Biden’s reelection message as he seeks to convince still-skeptical consumers that the economy is heading in the right direction ahead of November’s vote.

The personal consumption expenditures (PCE) price index rose at an annual rate of 2.7 percent in March, up 0.2 percentage points from a month earlier, the Commerce Department said in a statement.

This was above the median forecast of 2.6 percent in a survey …