A key measure of US inflation has made it across the 2 per cent threshold targeted by monetary policymakers at the Federal Reserve.
The personal consumption expenditures price index (PCE) hit 2.1 per cent year-over-year in February, according to data released Friday morning by the Commerce Department. That represents a 0.1 per cent rise from a month ago.
The Fed has madeits 2 per cent inflation target a key factor when weighing interest-rate moves since the financial crisis.
Alongside the inflation figure, the Commerce department said that personal income rose 0.4 per cent in February, in line with Wall Street’s expectations, while real personal spending pulled back, dropping 0.1 per cent despite predictions for a 0.1 per cent rise.