A closely watched report released by the Commerce Department on Wednesday showed U.S. consumer prices were virtually unchanged in the month of March.
The Commerce Department said its personal consumption expenditures (PCE) price index edged down by less than a tenth of a percent in March after rising by an upwardly revised 0.4 percent in February.
The report showed a 0.5 percent decrease by prices for goods more than offset a 0.2 percent uptick by prices for services.
The Commerce Department also said the annual rate of growth by the PCE price index decelerated to 2.3 percent in March from an upwardly revised 2.7 percent in February.
Meanwhile, the Commerce Department said the core PCE price index, which excludes food and energy prices, crept up by less than a tenth of a percent in March after climbing by an upwardly revised 0.5 percent in February.
The core PCE price index was expected to come in unchanged compared to the 0.4 percent increase originally reported for the previous month.
The report also said the annual rate of growth by the core PCE price index slowed to 2.6 percent in March from an upwardly revised 3.0 percent in February.
The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending.
The Commerce Department said personal income rose by 0.5 percent in March after climbing by a downwardly revised 0.7 percent in February.
Personal income was expected to rise by 0.4 percent compared to the 0.8 percent increase originally reported for the previous month.
Disposable personal income, or personal income less personal current taxes, also climbed by 0.5 percent in March following a 0.8 percent advance in February.
The Commerce Department also said personal spending grew by 0.7 percent in March after rising by an upwardly revised 0.5 percent in February.
Excluding price changes, personal spending still grew by 0.7 percent in March after inching up by 0.1 percent in February.
With spending climbing by more than income, personal saving as a percentage of disposable personal income dipped to 3.9 percent in February from 4.1 percent in February.