Economists are bracing for intensifying price pressures and slower growth, posing a challenge for the Federal Reserve.

The consumer price index for both all-items and core increased 0.2% in February, slightly below expectations. On an annual basis, headline inflation was at 2.8%, while core was at 3.1%. Both also were 0.

U.S. consumer prices increased moderately in February as higher shelter costs were partially offset by cheaper airline fares, giving the Federal Reserve room to keep interest rates unchanged next week while monitoring the economic impact of a trade war.