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.

However, the Commerce Department announced Friday that the Fed's key inflation measure expanded more than expected in February, as the growth in personal consumption expenditures put the 12-month inflation rate at 2.8%. Economists surveyed by Dow Jones had been expecting numbers closer to 0.3% for PCE and only 2.7% for the inflation rate.

The latest inflation report out this Friday shows price growth accelerated again, rising 0.4% last month. The Consumer Price Index focuses on core inflation, which excludes the fluctuating prices of groceries and energy.