The Fed's Preferred Inflation Gauge Was Much Lighter Than Expected. Stocks Are Climbing.

The core personal consumption expenditures price index increased 0.2%, below expectations. (Credit: Getty Images)

The Federal Reserve's preferred inflation gauge was much lower than expected, new figures showed.

According to the latest data from the Commerce Department, the personal consumption expenditures price index climbed a seasonally adjusted 0.3% for the month. The 12-month gain stood at 3.4%, below the 3.7% expected by economists.