STORY: A key report on U.S. inflation released Friday showed prices rose moderately in April, in line with expectations.
The Commerce Department’s personal consumption expenditures price index — the Federal Reserve’s preferred inflation gauge — rose 0.3% last month, matching March’s gain.
In the 12 months to April, prices rose 2.7%, the report said.
The Fed aims to bring that annual rate down to 2% and has been raising interest rates in an effort to achieve that goal.
Core inflation, which excludes volatile food and energy prices, improved slightly, up 0.2%, down from the previous month.
Consumer spending also slowed in April.
Markets continue to estimate that there is around a 50% chance that the central bank will begin cutting interest rates in September.
yahoo
