Key US PCE inflation measure holds steady at 2pc in April

WASHINGTON: The US inflation measure most closely watched by the Federal Reserve held steady at two percent in April, the Commerce Department reported Monday.

However, the 12-month rate for the Personal Consumption Expenditures price index excluding volatile food and energy prices remained at 1.8 percent, according to the most recent data.

The Fed watches price measures closely to determine how fast to raise interest rates, but has signaled that the two percent target is not a ceiling, and it would be comfortable with inflation rising slightly above that level for a time.