Federal Reserve’s preferred inflation gauge rises as consumer gloom deepens

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The Federal Reserve’s preferred inflation gauge rose more than forecast in February, while consumer gloom deepened, underscoring concerns that the US is on course for a bout of stagflation and knocking Wall Street stocks.

The core reading of the personal consumption expenditure (PCE) price index, was up 2.8 per cent in February from a year ago, according to Bureau of Economic…