Consumer prices in the U.S. picked up last month, the Associated Press reports, a sign that inflation remains a persistent challenge for the Federal Reserve.
Prices rose 0.4% from January to February, higher than the previous month’s figure of 0.3%, the Labor Department said today. Compared with a year earlier, consumer prices rose 3.2% last month, faster than January’s 3.1% annual pace.
Excluding volatile food and energy prices, so-called “core” prices also climbed 0.4% from January to February, matching the previous month’s increase and a faster pace than is consistent with the Fed’s 2% target. Core inflation is watched especially closely because it typically provides a better read of where inflation is headed.
Pricier gas pushed up overall inflation, with pump prices rising 3.8% just from January to February. Grocery prices, though, were unchanged last month and are up just 1% from a year earlier. The cost of clothing, used cars, and rent also increased in February.
Despite February’s elevated figures, most economists expect inflation to continue slowly declining this year. At the same time, the uptick last month may underscore the Fed’s cautious approach toward interest rate cuts.
