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US Inflation shot 3.2 percent in the year through February, faster than expected
After stripping out volatile food and fuel costs for a better sense of the underlying trend, inflation came in at 3.8 percent, slightly faster than economists had expected but down from 3.9 percent in January.
U.S Consumer Price Index inflation report showed that price increases ticked up in February on an overall basis, backing up the Federal Reserve’s decision to proceed carefully as officials consider when and how much to lower interest rates.
Overall inflation climbed 3.2 percent last month from a year earlier, up from 3.1 percent in January. That’s down notably from a 9.1 percent high in 2022, but it is still quicker than the roughly 2 percent that was normal before the 2020 pandemic.
After stripping out volatile food and fuel costs for a better sense of the underlying trend, inflation came in at 3.8 percent, slightly faster than economists had expected but down from 3.9 percent in January.
How much that core measure climbed between January and February was also in focus. The measure picked up by 0.4 percent on a monthly basis, slightly more quickly than economists had forecast as airline fares and car insurance increased, even as a closely watched housing measure climbed less rapidly.
To date, inflation has come down steadily and relatively painlessly: Unemployment continues to hover below 4 percent and growth in 2023 was unexpectedly strong, even though the Fed has raised interest rates to a more than two-decade high.
Source: The New York Times