Inflation gauge tracked by Federal Reserve shows price pressures easing gradually

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Inflation gauge tracked by Federal Reserve shows price pressures easing gradually
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A measure of inflation that is closely tracked by the Federal Reserve slipped last month in a sign that price pressures continue to ease.

by PAUL WISEMAN AP Economics WriterA clearance sign is displayed at a retail clothing store in Downers Grove, Ill., Tuesday, March 12, 2024. On Friday, March 29, 2024, the government issues its latest monthly report on the Federal Reserve’s preferred inflation gauge, a key measure of how well the Fed’s drive to tame inflation is succeeding.

The figures also revealed that consumers, whose purchases drive most of the nation's economic growth, surged 0.8% last month, up from a 0.2% gain in January. Some of that increase, though, reflected higher gasoline prices. The jump in borrowing costs for companies and households was also expected, though, to cause widespread layoffs and tip the economy into a recession. That didn’t happen. The economy has grown at a healthy annual rate of 2% or more for six straight quarters. Job growth has been solid. And the unemployment rate has remained below 4% for 25 straight months, the longest such streak since the 1960s.

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