Inflation held steady at 2.4% in February, ahead of Iran war

The data may reveal less than usual about inflation’s path as it does not account for gas and oil price surges sparked by the Iran war in early March.

U.S. consumer prices rose 2.4% in February from a year earlier, the Bureau of Labor Statistics reported March 11, in line with forecasters’ expectations. 

The February figure means the rate of annual inflation held steady after falling from 2.7% in December last year to 2.4% in January. Normally, that reading might suggest inflation is stabilizing, but the data may reveal less about inflation's trajectory than usual, as it does not account for gas and oil price surges sparked by the Iran war in early March.

"These inflation numbers provide some comfort, but this month’s spike in energy prices make them a relic of the past," David Russell, global head of market strategy at TradeStation, an online brokerage firm, said in a note to USA TODAY. "Investors and the Fed are in uncharted territory right now, taking their cues from crude oil and tanker traffic in the Strait of Hormuz."

From January to February, prices rose by 0.3%, up from a 0.2% increase in the first month of the year. The cost of shelter, food, and energy increased over the month, while the price of used cars and trucks, as well as motor vehicle insurance,declined, the BLS said.

More: Iran war live updates: 3 ships attacked in Strait of Hormuz