Inflation Ticks Back Up in February on Surging Energy Prices

• Inflation ticked up in February to 2.5% annually, reversing some recent progress in lowering inflation • Energy prices jumped 2.3% in February, driving the increase in inflation • Core inflation (excluding food and energy) slowed slightly, which was a bright spot • Consumer spending staged a huge rebound, accelerating 0.8% in February, but this may not be sustainable • Latest data unlikely to shift Fed's plans to eventually cut rates, though cuts may be delayed given continued inflation