US inflation remained hot enough to further complicate the path forward for the Federal Reserve as it contends with three bank failures and broader concerns about financial stability.
The consumer price index rose 6 per cent year on year in February, following a 0.4 per cent increase from the prior month. That is a step down from the annual 6.4 per cent pace registered during January, though still elevated.
Stripping out volatile food and energy prices, “core” CPI climbed another 0.5 per cent in February, up from last month’s 0.4 per cent rise and above economists’ expectations. On an annual basis, it rose 5.5 per cent, only 0.1 percentage points less than January’s year on year pace.