US inflation likely stayed elevated last month as Federal Reserve looks toward eventual rate cuts

Consumer prices likely rose last month at a pace that would exceed the Federal Reserve’s inflation target, underscoring why the Fed is being cautious as it considers when to cut interest rates and suggesting that inflation will remain a potent issue in President Joe Biden’s re-election race. Yet Tuesday’s government report may also show that underlying price pressures continue to ease, which would be an encouraging sign that inflation is gradually coming under control. Economists have estimated that prices rose at a brisk 0.4% annual pace from January to February, up from a 0.3% gain the previous month. Compared with a year ago, inflation is expected to have remained 3.1% in February, unchanged from January.