US inflation in February rose at a slightly faster pace than the previous month, while also ahead of expectations by economists.
The consumer price index increased 3.2% year over year in February, according to data released Tuesday by the Bureau of Labor Statistics. It was slightly higher than the 3.1% expected by economists and the pace it set in January. On a monthly basis, the consumer price rose 0.4% as expected.
Meanwhile, core inflation, which excludes the volatile food and energy prices, rose 3.8% YoY, which was down from 3.9% in January, but higher than a 3.7% rise expected by economists.
On a monthly basis, the core consumer price rose 0.4%, compared to 0.3% expected.
Food index was unchanged in February after a 0.4% rise in January. However, the energy index increased 2.3% in February after falling 0.9% a month prior.
Shelter index increased 0.4% for the month, and owners’ equivalent rent of residence increased 0.4% after rising 0.6% in January and also up 6% YoY.
As inflation remains well above the US Federal Reserve’s target of 2%, the fight to bring down inflation is far from over, while core inflation is proving stickier than expected. The Fed will be in a no rush stance to cut interest rates after a hotter-than-expected inflation. Forecast in the market for a 25bps rate cut remains in June.
