US consumer inflation rises unexpectedly in February, Marketing & Advertising News, ET BrandEquity

Consumer inflation unexpectedly accelerated in February, U.S. government data showed on Tuesday, a development that could give policymakers pause as they consider when to start cutting interest rates. The Labor Department said the annual consumer price index (CPI) was 3.2% last month, but “core” measures that remove volatile food and energy prices fell slightly to 3.8%. ” The shelter index rose in February. The gasoline index was similar,” the Labor Department said in its report.

Together, both contributed more than 60 percent of the index's overall monthly rise, the report added.

Inflation rose 0.4% from January to February, accelerating from the previous month.

Analysts expect the Fed to focus on underlying inflation when determining the best time to start cutting rates.

But the “core” measure remains higher than the 3.7% expected by analysts and also above the Fed's long-term target of 2%.

To curb persistent price increases, the central bank launched a series of rapid interest rate hikes in 2022, before holding rates at the highest level in more than 20 years at its most recent meeting.

The Fed has signaled it may start cutting interest rates later this year as long as inflation continues to decline.