US inflation rises in February, consumer spending remains strong

US inflation rose in February, with expectations of further increases in March due to the war with Iran, potentially delaying Federal Reserve interest rate cuts. The PCE price index increased 0.4% in February, matching forecasts. Annual PCE inflation stood at 2.8%. Core PCE inflation also rose 0.4% monthly. The Federal Reserve monitors PCE inflation for its 2% target. Policymakers are considering rate hikes due to persistent inflation, with odds of a rate cut this year diminishing.