U.S. Inflation Steady Before Oil Price Hike

U.S. inflation remained stable in February 2026, prior to a significant increase in oil prices following an attack on Iran. The Consumer Price Index (CPI) showed a 0.3% rise in February, matching January's increase. Annually, inflation stood at 3.1% in February, a slight decrease from 3.2% in January. Core inflation, excluding volatile food and energy prices, also rose by 0.3% in February and 3.8% year-over-year.

This stability occurred before crude oil prices surged by approximately 4% to $82 per barrel on March 11, 2026, after an attack on Iran. The price increase was driven by concerns over potential disruptions to global oil supplies. Economists anticipate that this rise in energy costs will likely impact March inflation figures, potentially pushing them higher.

The Federal Reserve is closely monitoring inflation data as it considers future interest rate adjustments. Persistent inflation could influence the timing and magnitude of any rate cuts, with current market expectations suggesting a potential rate reduction later in 2026.