The United States reported a February inflation rate of 2.4 %, unchanged from January, according to the U.S. statistical agency on Wednesday. Over the month, prices rose by 0.3 %, making February the second month in a row of increases. Core inflation-excluding energy and food-stood at 2.5 % in February, the same as in January.
Year‑on‑year, energy prices climbed 0.5 %, after a 0.1 % decline in the previous month. Food prices increased by 3.1 % over the year, up from 2.9 % in January. The fallout from the war that began at the end of February in the Middle East has not yet been reflected in the numbers.
Investors keep a close eye on U.S. inflation because it is a key gauge of the Federal Reserve’s policy direction. Elevated interest rates tend to hurt both the stock market and the housing market, in part because bank accounts remain an attractive alternative for savers.