Consumer spending increased for the second straight month in March, despite an uptick in an inflation measure that is closely watched by the Federal Reserve.

The personal consumption expenditures price index — a key gauge used by the Federal Reserve to measure inflation — rose 2.7% in March from the same period a year ago, according to the Commerce Department's Bureau of Economic Analysis.

The index increased 0.3% on a month-to-month basis last month, matching the gain in February, according to the report.

Meanwhile, consumers showed they are still shopping despite the elevated prices. Personal spending rose 0.8% in March from the prior month, slightly higher than the 0.7% increase expected by analysts.

The inflation and consumer spending data came in the wake of a weaker-than-expected gross domestic product report and suggests the Fed could keep interest rates elevated for a while.

"Fed officials will likely not have enough evidence based on inflation data alone to cut rates as soon as June," Citigroup's Veronica Clark told Reuters. "But we continue to think officials will be increasingly uncomfortable leaving rates at restrictive levels for too long and will find evidence in May and June inflation data to cut rates in July."

The chain, based in Orlando, Florida, has looked for a buyer in recent months even as it has weighed filing for Chapter 11 bankruptcy protection to restructure its mounting debt and exit a number of costly and lengthy leases, sources told CNBC.

Red Lobster counts 649 restaurants mostly in the United States and has had multiple owners over the past 10 years after Darden Restaurants sold the chain in 2014 to private equity firm Golden Gate Capital and tried to turn the chain’s finances around, CNBC reported.

Thai Union Group, a seafood supplier and Red Lobster vendor, bought a minority stake in the chain in 2016 and teamed with an investor group called Seafood Alliance to buy out Golden Gate’s remaining stake in 2020.

Red Lobster did not immediately respond to a request to comment from CoStar News.

The longtime chain's struggles come amid signs that U.S. restaurants should post sales growth this year as pandemic-era challenges such as supply chain disruptions start to recede, according to a report from industry research and consulting firm Technomic.

A survey of commercial real estate finance executives showed a more bearish outlook on the economy and borrowing conditions with expectations dimming for the Federal Reserve will cut interest rates quickly.

The CRE Finance Council's first-quarter sentiment index, based on a survey conducted from April 4 to April 15, fell to 105.4 from about 110 in the fourth quarter of last year.

The decline suggests a shift in economic expectations, influenced by prolonged high interest rates and subdued borrower demand for financing, according to the council.

More than 400 companies and 18,000 professionals are members of the real estate finance industry trade association. The council started the sentiment survey in 2017 as a way to gauge quarter-to-quarter shifts in market conditions and outlook.

The survey collects responses from more than 60 senior executives that are part of its board of governors, finding that 24% anticipate better economic performance over the next 12 months, down from 54% in the fourth quarter.

The results reflect a "more tempered outlook amid continued economic uncertainty," the association's executive director, Lisa Pendergast, said in a statement.