The Consumer Price Index rose at an annual rate of 2.4% in February, unchanged from the prior month and representing a cooler pace than economists had forecast.
The Labor Department data captures the period before the Iran war broke out in late February. Since then, oil prices have surged, driving inflation concerns among investors.
Inflation was forecast to rise 2.5% last month, according to economists polled by financial data firm FactSet. The CPI, a basket of goods and services typically bought by consumers, tracks changes in those prices over time.
The Iran war threatens to stall or even reverse progress in taming inflation, with rising oil prices pushing up gasoline costs and potentially spilling over into other parts of the economy, economists say.
“The path towards disinflation has become murkier,” said DeutscheBank analysts in a March 10 research note. Higher energy prices could “lead to higher headline inflation” in the coming months, they added.
