US Inflation Rose in February

The inflation rate in the US picked up in February, as prices for petrol and housing pushed higher.

The Labor Department annual rate, which measures the pace of price increases, was 3.2 per cent in February, up from 3.1 per cent in January.

Airfare, car insurance and clothing were among the items driving the increase over the month.

Grocery prices, which have jumped in recent years, fuelling public discontent, were unchanged.

The monthly report comes during a critical presidential election year and as the US central bank, the Federal Reserve, is debating the next step in its fight to rein in prices.

Inflation has slowed significantly since the Fed started hiking borrowing costs sharply in 2022 and the bank is expected to start reversing course and cutting interest rates sometime this year.

But calls for the first cut to come as soon as March have been revised as recent inflation readings show progress stalling, with many now expecting its first move in June or later.

Analysts said the figures were affected by seasonal price adjustments tied to the start of the year, but that the overall report was likely to reinforce the Fed’s determination to remain cautious.