Inflation held steady in February — though Iran war could reheat prices

Inflation held steady in February ahead of the war in Iran, though economists are concerned that energy shocks from the conflict could ripple across the economy – complicating the Fed’s path to interest rate cuts.

The Consumer Price Index rose 2.4% in February over the past 12 months as expected, the same yearly increase as January, the Bureau of Labor Statistics said Wednesday.

Inflation held steady in February ahead of the war in Iran. Getty Images

The core figure – which excludes volatile food and energy prices – rose 2.5% on a yearly basis, also matching January’s rate.

“Until the Strait of Hormuz is opened and the turmoil in the Middle East simmers down, the Federal Reserve may step away from any action on interest rates,” Skyler Weinand, chief investment officer at Regan Capital, said in a note Wednesday.

“The Fed now has tariffs, potential tariff refunds, higher energy prices and weakening employment to sort through in order to get any kind of clarity on what to do next.”