Inflation up again in February, driven by gasoline and home prices [Video]

Consumer prices climbed again last month, as inflation remains a persistent thorn in the side of the Federal Reserve and for President Joe Biden’s re-election campaign, both of which are counting on a steady easing of price pressures this year.

Prices rose 0.4% from January to February, a pickup from the previous month’s figure of 0.3%. Compared with 12 months earlier, consumer prices rose 3.2% last month, faster than January’s 3.1% annual pace, the government reported on Tuesday.

Excluding volatile food and energy prices, so called “core” prices also climbed 0.4% from January to February, matching the previous month’s increase at a faster pace than is consistent with the Fed’s 2% target. Core inflation is watched especially closely because it typically provides a better read of where inflation is likely headed.

“Unless inflation starts to drop and come in below forecast, most notably CPI and Core PCE, then we expect the Fed to …