Consumer prices rose 0.4% in February and the annual rate of inflation slowed again, potentially giving the Federal Reserve leeway to approve a smaller increase in interest rates next week as it gauges the fallout from the failure of Silicon Valley Bank.
Economists polled by The Wall Street Journal had forecast a 0.4% advance in the consumer price index last month. Prices had risen 0.5% in January, revised government figures showed.
The annual rate of inflation, meanwhile, slowed to 6% from 6.4%. That’s the lowest level since September 2021.
The so-called core rate of inflation, which omits food and energy, rose a sharper 0.5%. Wall Street had forecast of 0.4% gain.
The increase in the core rate over the past 12 months dipped to 5.5% from 5.6%. The Fed views the core rate as a more accurate predictor of future inflation trends.
Source: MarketWatch