#PCEInflationWatch The price gauge used by the Federal Reserve to help set U.S. interest rates accelerated in December, pushing the bank further from its inflation goal and reducing the chance of another reduction in borrowing costs soon.

The PCE index rose 0.3% last month, the government said Friday, to mark the biggest increase since last April.

The increase in inflation in the past year was at a seven-month high of 2.6%, up from 2.4% in the prior month.