The U.S. inflation rate for February remained unchanged at 2.4 percent, according to the Bureau of Labor Statistics. Year‑over‑year, overall price levels rose 0.3 percent, while the core measure-excluding energy and food-also stood at 2.5 percent, identical to January. Energy prices increased 0.5 percent from the previous year, after a 0.1 percent decline in the month before. The uptick in food costs-3.1 percent annually, up from 2.9 percent in January-has not yet fully reflected the impact of the Middle East conflict that began at the end of February.
Investors closely monitor U.S. inflation because it is a key indicator of the Federal Reserve’s monetary policy. Rising rates are usually viewed as negative for the stock market and the housing sector, in part because bank deposits remain an attractive alternative when borrowing costs are high.
