U.S. consumer prices increased solidly in February amid higher costs for gasoline and shelter, suggesting some stickiness in inflation that could delay an anticipated June interest rate cut from the Federal Reserve.
The consumer price index (CPI) rose 0.4 per cent last month after climbing 0.3 per cent in January, the Labour Department’s Bureau of Labour Statistics (BLS) said on Tuesday. Gasoline and shelter, which includes rents, contributed more than 60 per cent to the monthly increase in the CPI.
In the 12 months through February, the CPI increased 3.2 per cent, after advancing 3.1 per cent in January.
Economists polled by Reuters had forecast the CPI gaining 0.4 per cent on the month and increasing 3.1 per cent year-on-year. The annual increase in consumer prices has slowed from a peak of 9.1 per cent in June 2022, but progress has stalled in recent months.
Inflation picked up…
