Key Fed inflation gauge rose 2.8% annually in February, as expected

Inflation rose in line with expectations in February, likely keeping the Federal Reserve on hold before it can start considering interest rate cuts, according to a measure the central bank considers its more important barometer.

The personal consumption expenditures price index excluding food and energy increased 2.8% on a 12-month basis and was up 0.3% from a month ago. Both numbers matched the Dow Jones estimates.

Including volatile food and energy costs, the headline PCE reading was 0.3% for the month and 2.5% at the 12-month rate, compared to estimates for 0.4% and 2.5%.

Both the stock and bond markets were closed in observance of the Good Friday holiday.

This is breaking news. Please check back here for updates.