Inflation ticked up in February as Fed weighs interest rate cuts

The Federal Reserve is looking for steady, reliable signs that inflation is simmering down before it cuts interest rates this year. So far, 2024 has not delivered.

Data released by the Bureau of Labor Statistics on Tuesday showed prices rose 3.2 percent over last year, slightly outpacing forecasts of 3.1 percent. Prices also rose 0.4 percent in February over the previous month — in line with expectations, but still hotter than economists would like to see.

Those top-line figures represent just a snippet of a bigger economic story. But they also added a dose of uncertainty about whether the Fed’s inflation fight is getting tougher after 2023’s remarkable progress. Markets dipped slightly into the red shortly after Tuesday’s open, before flashing green and posting solid gains by the end of the day.

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