Personal consumption expenditures (PCE) sﷺlowed l🥀ast month, but likely not enough for the Federal Reserve to stop rate hikes.

The Fed's preferred measure of inflation was up 0.1% throughout March, less than the month prior and on par with economists' estimates, according to data released from the Bureau of Economic Analysis Friday. From the same time a year ago, PCE w⛎as up 4.2%, less than the 5% year-over-year increase in February.

The yearly growth is the slowest since May 2021. The drop could indicate that the Fed's campaign of interest hikes is having the intended impact—settling rampant inflation.

However, traders are not convinced Fed officials are satisfied with their work. About 88% are pricing in a 25 basis point rate hike for the May 2 meeting, according to the CME FedWatch tool.

Exclud🦄ing volatile food and energy prices, the price ind﷽ex remained the same month-over-month. This could be an indicator that the core prices the Fed is trying to nudge downward are stubbornly staying in place.

The increase was once again led by housing anಌd utility costs, while energy costs took the biggest dive.