US inflation saw a sharper-than-predicted hike in February, echoing the unsettling trend seen in January and sending worrying signals about the likelihood of imminent Federal Reserve rate cuts.
The Consumer Price Index (CPI), as reported by the Bureau of Labor Statistics, climbed by 3.2% year-on-year (YoY) in February, slightly exceeding the 3.1% uptick recorded in January and surpassing forecasts for it to remain unchanged at the same pace.
Excluding volatile components like energy and food, the core inflation rate reached 3.8% annually in February, a minor pullback from January's 3.9%. Meanwhile, the annual energy and food indices fell by 1.9% and 2.2%, respectively, for the same month.
On a monthly basis, the CPI advanced 0.4% in February, in line with forecasts, after jumping by 0.3% in the month before.
The basic price index also increased by 0.4% in February after soaring by the same percentage in January. Higher housing prices, airline tickets, and vehicle insurance contributed to this uptrend.
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