Key Inflation Measure Hit 40-Year-High; Consumer Spending Rises Sharply

People pay for their purchases at a supermarket in New York, on March 28, 2022. Andrew Kelly/Reuters

An inflation measure closely tracked by the Federal Reserve hit a 40-year-high.

The Commerce Department’s Personal Consumption Expenditures (PCE) price index increased by 6.6 percent in the 12 months from March last year, the highest annual gain since January 1982, outpacing February’s year over year gain of 6.3 percent.