Inflation Inches Up in February, Underscoring Bumpy Path Ahead for Taming Price Hikes

Inflation ticked up slightly in February to 3.2% after months of progress, underscoring the bumpy road ahead for fully quelling price increases.

A closely watched measure of underlying inflation rose faster than expected, driven by increases in airline fares and car insurance.

Housing inflation moderated but remains high, with rent costs picking up slightly while a measure of homeownership costs eased.

Food inflation continued to moderate, with grocery and dining prices flat or rising only slightly. Egg prices spiked again due to bird flu.

The report supports the Fed's cautious stance on interest rates, though policymakers maintain confidence that disinflationary trends are intact despite the uneven path.