CPI holds steady in February before new inflation worries from Iran war
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The Consumer Price Index was steady in February, and a gauge that excludes food and energy costs held at the lowest in four years, the government said on Wednesday.
Why it matters: Inflation was stable last month, but new price pressures from the Iran war have since emerged — a fresh factor for consumer affordability concerns.
By the numbers: CPI rose 2.4% in the 12 months through February, while core CPI — which strips out food and energy costs — climbed 2.5%, matching the lowest level since April 2021. Both measures are steady from January.
- On a monthly basis, CPI rose 0.3%, compared with the 0.2% increase in January. Core CPI rose 0.2%.
The big picture: The data is a snapshot of the inflation situation before the war, which has caused global energy prices — including prices at the pump — to soar.
- Energy prices helped put downward pressure on inflation for much of the past year. That looks set to change.
What to watch: New signs of inflation trouble complicate forecasts for the Federal Reserve to resume cutting interest rates, even as the labor market weakens.
- The war also complicates the affordability crisis that has heaped political pressure on President Trump ahead of the midterm elections.
Editor's note: This story has been updated with a chart showing CPI.
