Inflation held steady in February and remained above the Fed's target

Core Insights - Inflation remains elevated, with consumer price growth exceeding the Federal Reserve's target rate, raising affordability concerns for policymakers [1] - The consumer price index (CPI) rose 0.3% month-over-month in February, maintaining a year-over-year rate of 2.4%, unchanged from January [2] - Core prices, excluding volatile food and energy costs, increased by 0.2% from the previous month and 2.5% year-over-year, aligning with economists' expectations [3] Inflation Data Impact - The inflation data from December 2025 to April 2026 will be influenced by data collection interruptions due to a 43-day government shutdown last fall [4] - During the shutdown, the Bureau of Labor Statistics (BLS) utilized a carry-forward methodology to compensate for missing data, which may introduce a downward bias in inflation data until new data is available in spring [5] Consumer Impact - High inflation has significantly pressured U.S. households, particularly affecting lower-income Americans who spend a larger portion of their income on necessities [6] - Food prices rose by 0.4% in February and are up 3.1% year-over-year, with specific categories like food at home and food away from home also showing increases [7] - Prices for meats, poultry, and fish increased by 0.2% in February, with beef and veal prices rising 1.5% for the month and 14.4% year-over-year, while egg prices fell significantly due to supply issues [8]