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U.S. consumer inflation remained unchanged at 2.4% in February compared with a year earlier, according to new data that largely matched market forecasts and kept expectations of stable interest rates in place.
The Consumer Price Index (CPI) increased 0.3% on a monthly basis during February, reflecting moderate price growth across several categories while declines in others helped keep overall inflation steady.
Data released by the U.S. Labor Department showed price increases in sectors including medical care, education, apparel, airline fares and household furnishings.
At the same time, several categories recorded declines. Prices fell for used vehicles, vehicle insurance, communication services and personal care products, offsetting some of the upward pressure seen elsewhere in the index.
The core Consumer Price Index, which excludes food and energy prices due to their volatility, rose 2.5% compared with the same month last year.
Energy prices edged up 0.6% in February after declining 1.5% in the previous month, contributing modestly to the monthly increase in the overall CPI.
The inflation data aligned closely with analysts’ expectations and reinforced the view that the U.S. Federal Reserve is likely to leave interest rates unchanged at its upcoming policy meeting.
According to CME Group’s FedWatch Tool, markets are nearly fully pricing in the likelihood that the benchmark rate will remain between 3.50% and 3.75%.
The February inflation figures also did not reflect potential price pressures from global oil market disruptions tied to the U.S.-Israel war on Iran, which began on the final day of the month and therefore fell outside the reporting period for the data.
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