Inflation Holds Steady in February While Gas Prices Rise, Keeping Rate Hikes on the Table

Inflation remained elevated at 3.2% annually in February, underscoring the bumpy road back to the Fed's 2% target. Rising gas costs offset flat food prices.

Core inflation, excluding food and energy, ticked down slightly to 3.8% annually but monthly gains persisted. This could delay Fed rate cuts.

Services inflation continues to climb due to strong wage growth, with airline fares, car insurance, and rent rising sharply.

Gasoline prices rose nearly 4% in February, signaling the start of seasonal price increases. Food inflation eased to just 1% annually.

Polling shows 26% of voters feel the economy is good/excellent, up 6% since July. More Democrats are optimistic, likely due to recent wage gains.