Inflation Steady as Consumer Spending Buoys Economy, But Rate Cuts Still Months Away

• Inflation report on Tuesday expected to show consumer prices rose 0.4% in February, keeping annual inflation at 3.1%

• Retail sales on Thursday forecast to rebound 0.8% in February after weak January showing

• University of Michigan consumer sentiment index for March estimated to be little changed or edge down on higher gas prices and stock volatility

• Fed not expected to cut interest rates until June or later given gradual decline in inflation

• Consumer spending still seen as bulwark against recession in 2024, though forecast to moderate from 2023 levels