Inflation data from CPI report shows sharper price gains: What it means for Fed rate cuts.

Rising gasoline costs kept inflation elevated in February, underscoring that a return to more modest consumer price increases following a pandemic-induced spike may continue to be bumpy.

The climb in fuel costs and rent offset flat food prices.

Overall prices rose 3.2% from a year earlier, up from 3.1% in January, according to the Labor Department’s consumer price index. On a monthly basis, costs increased 0.4% following a 0.3% gain the previous month.

What is the core inflation rate right now?

Core prices, which exclude volatile food and energy items and are watched more closely by the Federal Reserve, increased 0.4% after a similar rise in January. That still lowered the annual increase from 3.9% to 3.8%, the smallest since May 2021.