The Federal Reserve's preferred inflation gauge showed that price growth slowed in March, with inflation trending closer to the central bank's target rate.

The Commerce Department on Wednesday reported that the personal consumption expenditures (PCE) index was flat compared with the prior month and grew 2.3% on an annual basis. Those figures were largely in line with the estimates of economists polled by LSEG, which predicted flat monthly price growth and annual inflation to be 2.2%.

Core PCE, which excludes volatile food and energy prices, was also flat from a month ago and grew 2.6% on an annual basis. LSEG economists predicted a slight monthly increase of 0.1%, while their annual estimate was in line with the report.

Federal Reserve policymakers are focusing on the PCE headline figure as they try to slow the pace of price increases to their target of 2%, though they view core data as a better indicator of inflation. Headline PCE was down from 2.5% in February, while core PCE also declined from 2.8%.

This is a developing story. Please check back for updates.