Key Federal Reserve Inflation Gauge Rose 2.8% in March

Key Federal Reserve Inflation Gauge , Rose 2.8% in March.

According to Commerce Department data released on April 26.

The personal consumption expenditures (PCE) price index, not including food or energy, rose 2.8% year-over-year in March.

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That exceeded Dow Jones estimates of 2.7%, CNBC reports.

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When also accounting for food and energy, the all-items PCE measure rose 2.7%, which was above the 2.6% estimate.

Inflation reports released this morning were not as a hot as feared, , George Mateyo, chief investment officer at Key Wealth, via CNBC.

... but investors should not get overly anchored to the idea that inflation has been completely cured and the Fed will be cutting interest rates in the near-term, George Mateyo, chief investment officer at Key Wealth, via CNBC.

The prospects of rate cuts remain, but they are not assured, and the Fed will likely need weakness in the labor market before they have the confidence to cut, George Mateyo, chief investment officer at Key Wealth, via CNBC.

Consumers continue to spend despite higher prices, CNBC reports.

Personal spending increased 0.8% in March, while personal income rose 0.5%.

The personal saving rate dropped to 3.2% as more people are having to dip into their savings to cover the cost of living.

The Fed continues to target 2% inflation, which the core PCE has exceeded for the last three years, CNBC reports.