Key fed index on consumer prices shows inflation rose 4.9% from year ago

Commerce report also showed personal income rose 0.3% for December, consumer spending declined 0.6%

A key federal measure on the prices of goods in the United States released Friday shows inflation in the country rose 4.9% from a year ago, the biggest gain since September 1983.

The Commerce Department's December 2021 report – the core personal consumption expenditures (PCE) price index – is the preferred gauge of the Federal Reserve, which earlier this week indicated it will raise interest rates in March to try to slow inflation.

The index, which excludes food and energy, was slightly more than the 4.8% Dow Jones estimate and higher than the 4.7% pace in November, according to CNBC. The monthly gain of 0.5% was in line with expectations, the news outlet also reports.

The report also showed personal income rose 0.3% for December, below the 0.4% estimate, and consumer spending declined 0.6%, less than the 0.7% estimate, CNBC also reports.