US Core CPI Tops Estimates, Pressuring Fed as It Weighs Hike

Underlying 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. From a report: 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. The figures reaffirm that the Fed's quest to tame inflation will be a bumpy one as the economy has largely proven resilient to a year's worth of interest-rate hikes so far. The challenge for the Fed now is how to prioritize inflation that is still far too high with growing financial stability risks in the unraveling of Silicon Valley Bank.

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