Inflation held steady in February before Iran war drove up gas prices
Summary
In February, inflation in the U.S. held steady at a 2.4% annual increase, slightly lower than experts expected. However, the outbreak of war in Iran led to a sharp rise in oil prices, which is causing higher gas prices and could push up costs for food and other goods in the coming months.Key Facts
- The Consumer Price Index (CPI) rose by 2.4% annually in February, unchanged from January.
- Inflation was expected to rise 2.5% but remained slightly lower than forecasts.
- Core inflation, which excludes volatile food and energy prices, rose 2.5% annually.
- Food prices increased by 3.1%, while eating out costs went up 3.9%.
- Gasoline prices fell 5.6% in February but jumped nearly 20% after the Iran war started.
- The average U.S. gas price rose to $3.58 per gallon after the war began, up from about $3.00.
- Higher oil prices due to the Iran conflict may increase inflation for energy and many other goods.
- Experts expect that the Federal Reserve might delay cutting interest rates because of new inflation risks linked to energy costs.
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