US Inflation Set to Stay Sticky as Tariff Risk Looms

US consumer prices probably rose in February at a pace that illustrates plodding progress on inflation for Federal Reserve officials content to remain on the sidelines as they assess a policy whirlwind from the Trump administration, Bloomberg reported.

Bureau of Labor Statistics figures on Wednesday are projected to show that the consumer price index minus food and energy climbed 0.3%, based on the median estimate of economists surveyed by Bloomberg. While less than January’s 0.4% gain in January, the magnitude of the increase leaves annual price growth elevated.

The so-called core CPI probably rose 3.2% from February last year. The data will inform the Fed’s preferred price gauge, which isn’t due until after the March 18-19 policy meeting. Interest-rate setters — now in a blackout period ahead of that gathering — have an inflation goal of 2%.

The latest snapshot of price pressures follows a February jobs report that showed steady payrolls growth tempered by hints of underlying cracks in the labor market. The broader economy is also displaying signs of softening, reflecting weaker consumer spending, sentiment and homebuilding at the start of the year.

A day after the CPI report, data on Thursday are projected to show similar lingering cost pressures at the economy’s wholesale level. The producer price index, excluding food and fuel, is projected to have risen by 3.5% in February from a year ago.