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Inflation remained high as prices continued to tick up in February. Year over year, inflation was at 3.2%, slightly higher than the 3.1% increase investors were expecting.
Month-over-month, inflation was up by 0.4%, the highest increase since September 2023.
The key drivers in inflation in February were increased gas prices and higher shelter costs, which jumped by 5.7%.
"The components we thought would have reduced, especially shelter, which comprises the bulk of CPI — it's a gigantic weight in the composition of the index — we thought would have dropped further," said Michael Antonelli, managing director and market strategist at the financial group Baird & Co, according to NBC News.
The latest data from the U.S. Bureau of Labor Statistics did offer some good news for consumers as overall food prices didn't rise, the first time that's happened in nearly a year.
With inflation stuck at around 3%, it is unlikely the Federal Reserve will lower interest rates in the near future and may hold off on rate cuts until late summer.