Wednesday's CPI Report Didn't Solve the Fed's Biggest Problem. History Says It's About to Get Worse.

February's Consumer Price Index (CPI) report landed Wednesday morning, and it looked rather tame. Prices rose 2.4% year over year, exactly matching Wall Street's expectations. Core inflation -- which strips out food and energy -- came in at 2.5%. Rent posted its smallest monthly increase since January 2021. While the number is still above the Federal Reserve's target of 2%, it's not terribly so. But that may soon change. Here's the problem: February's data was collected before the war in Iran began. The ...