The so-called core personal consumption expenditures price index increased 0.1% from the prior month.
The news came just hours before the Fed was to make an announcement on interest rates.
The report offers Fed officials some solace about the pathway for inflation.
Economists see the core gauge as a better indicator of underlying inflation than the overall CPI.
A new report signaled further evidence that demand for workers is moderating.
The index that measures wages and benefits increased 1.2%.
Demand for workers is still healthy, supporting wage growth.
A new report points to plenty of momentum in consumer spending heading into the second quarter.
Inflation-adjusted consumer spending exceeded all estimates.
Gross domestic product rose at an upwardly revised 3.4% annualized pace in the fourth quarter.