Inflation held at 2.5% for the year ending in February, the Bureau of Labor Statistics reported Friday in an update to the personal consumption expenditures index, which is the Federal Reserve’s preferred gauge.

U.S. personal income and consumption both rose in February, the Commerce Department said Friday. But the Fed's preferred metric for core inflation increased farther above the central bank's target. Incomes climbed by 0.

The Federal Reserve’s key inflation measure rose more than expected in February while consumer spending also posted a smaller-than-projected increase, the Commerce Department reported Friday.