US inflation held steady as expected in February
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The news: US inflation held steady in February, offering relief on price pressures before the impact of the Iran war plays out on consumer prices.
The numbers: Data from the US Labor Department released Wednesday saw consumer prices rise 2.4% in February from a year earlier, in line with the 2.4% rise a month prior. Core prices, which strip out food and energy items, rose 2.5% from the year prior, also in line with expectations.
Despite higher costs for fuel and groceries, lower prices for used cars, vehicle insurance and personal care kept inflation muted.
The context: The data, compiled before the US and Israeli launched strikes on Iran, would have been a key reading for the US Federal Reserve policymakers who will deliver their rates decision next week. However, the conflict in the Middle East conflict has rattled global economies and renewed concerns about the impact of inflation and affordability concerns ahead of the US midterm elections in November, reinforcing expectations that policymaker will leave interest rates unchanged.
“The February data is already completely inconsequential,” said Joseph Brusuelas, chief economist at RSM, shortly before the report was released.
The sources: US Labor Department, WSJ
