The Fed’s favorite inflation gauge just heated up — and that could mean another rate hike

A customer looks over merchandise at a store on March 14, in Miami.

Minneapolis (CNN) — The US economy has encountered some expected turbulence on inflation’s descent.

The Federal Reserve’s preferred inflation gauge bounced higher in April, underscoring Fed Chair Jerome Powell’s warnings that reining in price hikes “is likely to be bumpy.” But with spending also heating up, Friday’s data from the Commerce Department kicked up the odds for further rate hikes.