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.

Airfares were the catalyst for softer inflation prints in February, but the good news may not last given tariffs

U.S. inflation may have cooled a bit last month but it could be a short reprieve as President Donald Trump's tariffs are widely expected to keep prices elevated in the coming months. On Wednesday, the Labor Department is expected to report that in February the consumer price index rose 2.