U.S. inflation pressure builds up in February

WASHINGTON, March 29 (Xinhua) -- U.S. inflation pressure is building up in February, in line with central bankers' expectations.

The price index for personal consumption expenditure (PCE) rose 0.2 percent from the previous month in February, lower than the 0.4 percent growth in January, said the Commerce Department on Thursday.

However, on the year-on-year basis, the PCE price index, a preferred inflation gauge by the Federal Reserve, increased 1.8 percent, higher than the 1.7 percent growth in January.

Excluding the volatile food and energy prices, the core PCE price index rose 1.6 percent in February, the largest increase since April 2017.

Household consumption rose 0.2 percent in February, the same growth in January, said the Commerce Department. Personal income increased 0.4 percent in the month, also the same growth in the previous month. The spending lagged behind income growth for a second month in February.

Federal Reserve policymakers are optimistic about the economic outlook this year, saying that inflation on a 12-month basis is expected to move up in coming months and to stabilize around the central bank's 2 percent over the medium term.

Based on the improved economic outlook, Fed officials are considering faster pace of interest rate hikes. Market investors are now expecting that the central bank might raise interest rates four times this year. Enditem