US Inflation Steady in Feb, Oil Shock Clouds Future Outlook

• US Consumer Price Index (CPI) rose 0.3% month-on-month and 2.4% annually in February, matching estimates.
• Core CPI, excluding food and energy, increased 0.2% monthly and 2.5% annually, remaining above the Federal Reserve's 2% target.
• Housing costs, the largest CPI component, rose 0.2% monthly, with rent seeing its smallest increase since January 2021.
• The data predates a sharp spike in oil prices due to escalating US-Israel tensions involving Iran, raising concerns for future inflation.
• Federal Reserve is expected to maintain its policy stance, with traders anticipating the next interest-rate cut around September.