U.S. consumer spending rose 0.6 percent in March, but inflation erased most of the gain, while first-quarter worker compensation posted the smallest increase in six years, the government said on Friday.
The Commerce Department’s report on consumer spending showed inflation quickened in March, but the pickup was in line with expectations in financial markets.
The PCE price index, one of the Fed’s favorite measures of inflation, rose 0.5 percent in March after climbing 0.3 percent in February, further evidence of price pressures in the U.S. economy.
