The inflation increase complicates the Federal Reserve's next move amid market turmoil. Photograph: Julia Nikhinson/The New York TimesUnderlying US consumer prices rose in February by the most in five months, an acceleration that leaves the Federal Reserve in a tough position as it tries to thwart still-rapid inflation without adding to the turmoil in the banking sector.
The consumer price index, excluding food and energy, increased 0.5% last month and 5.5% from a year earlier, according to Bureau of Labor Statistics data out Tuesday. Economists see the gauge – known as the core CPI – as a better indicator of underlying inflation than the headline measure. The overall CPI climbed 0.4% in February and 6% from a year earlier.
The median estimates in a Bloomberg survey of economists called for a 0.4% monthly advance in the overall and core CPI measures.