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Personal income and spending rise more than expected

Akin Oyedele   

 Personal income and spending rise more than expected

Personal income and spending rose more than expected in February.

The release from the Commerce Department showed that they both increased 0.5%.

Economists had forecast that they rose 0.1%, after gains of 0.5% in January.

The release also included personal consumption expenditures (PCE), a gauge of individual spending and Federal Reserve chair Janet Yellen's preferred way to track inflation.

Core PCE, which excludes volatile food and energy costs, rose 0.1% month-on-month, and 1.7% year-over-year.

Core PCE was expected to rise 0.2% month-on-month, and 1.8% year-over-year. The Fed has a 2% inflation target.

The PCE deflator, which measures the average change in prices of all domestically consumed items, fell 0.1% in February. Compared to the prior year, it was up 1%. Both matched forecasts.

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