US prices likely rose before Iran war

Rise in inflation also expected in March

- LUCIA MUTIKANI

A cashier loads a turkey and other groceries for checkout at a Walmart Supercenter in North Bergen, New Jersey, in November.

(REUTERS)

US consumer prices likely picked up in February as the cost of petrol increased in anticipation of an escalating war in the Middle East, and with the conflict driving up oil prices, a further rise in inflation is expected in March.

The anticipated increase in the Consumer Price Index last month would also reflect the continued but staggered pass-through from President Donald Trump's sweeping tariffs — which he pursued under a law meant for use in national emergencies — that were struck down by the US Supreme Court last month.

The Labor Department's consumer inflation report later yesterday was, however, expected to show underlying price pressures rising moderately last month, thanks to relatively cheaper used motor vehicles and airline fares.

It is unlikely to have any impact on near-term monetary policy, with the Federal Reserve expected to keep interest rates unchanged next week.

"The February CPI is likely to show that progress on lowering inflation is stalling out again," said Sarah House, a senior economist at Wells Fargo.