A key inflation gauge watched closely by the Federal Reserve climbed on an annual basis in February.

The personal consumption expenditures price index (PCE) headline figure rose 2.5% last month, in line with expectations. On a monthly basis, prices rose 0.3%, slightly below the estimate of economists surveyed by LSEG.

Excluding food and energy, prices rose 2.8% annually in February and 0.3% from the prior month. Both figures were in line with expectations.

Consumer spending spiked 0.8% last month, up from the 0.2% increase in January.