WASHINGTON, March 29 Reuters U.S. prices increased moderately in February and the cost of services outside housing slowed considerably, keeping a June interest rate cut from the Federal Reserve on the table.

The personal consumption expenditures PCE price index rose 0.3 last month, the Commerce Department39;s Bureau of Economic Analysis said on Friday. Data for January was revised higher to show the PCE price index climbing 0.4 instead of 0.3 as previously reported.

In the 12 months through February, PCE inflation advanced 2.5 after increasing 2.4 in January. Economists polled by Reuters had forecast the PCE price index gaining 0.4 on the month and rising 2.5 yearonyear.

Price pressures are subsiding, though the pace has slowed from the first half of last year.

Fed officials last week left the U.S. central bank39;s policy rate unchanged in the current 5.255.50 range, having raised it by 525 basis points since March 2022.

Policymakers anticipate three rate cuts this year. Financial markets expect the first rate reduction in June. Fed Governor Christopher Waller said on Wednesday, there is no rush to cut the policy rate right now, but he did not rule out trimming borrowing costs later in the year.

Excluding the volatile food and energy components, the PCE price index increased 0.3 last month. That followed an upwardly revised 0.5 gain in January. The socalled core PCE price index was previously reported to have advanced 0.4 in January.

Core inflation increased 2.8…