The inflation rate last month was slightly lower than forecast by economists, although price increases are still higher than the Fed would like.

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.

As CPI report shows inflation continued at 2.8% in February, tariffs fueled worries of another recession, which President Donald Trump has declined to rule out.