The latest US inflation report showed that prices for goods and services rose moderately to 2.4% in February, compared to the previous year. And while that's good news to start with, the publication doesn't account for this month's recent fuel price changes, so this figure could jump even higher in March. The Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) for February was 2.4%, the same rate as in January. Meanwhile, the monthly change reflected a 0.3% increase month-over-month. Core inflation, which excludes the more volatile prices of food and energy, was 2.5% year-over-year, according to the BLS report. The monthly increase was 0.2%.

The BLS report aligned with the expectations of economists surveyed by Dow Jones Newswires and The Wall Street Journal for this month, anticipating that annual inflation could remain close to the levels recorded in January.

While the report showed that inflation remained virtually unchanged, housing and utility prices rose modestly, while several categories of goods, including used vehicles and auto insurance, experienced declines.

The housing index rose 0.2% in February. and was the largest contributor to the monthly increase across all items. Meanwhile, the food index increased 0.4% during the month, as did the at-home food index, while the out-of-home food index rose 0.3%.

One of the most important data points, and one that is expected to rise in March, is the energy index. It should be noted that the February data is moderate, showing a seasonal growth of 0.6% in energy, which aligned with specialists' expectations. However, it comes before the geopolitical conflicts recorded at the beginning of March, so this is expected to change things in the next report. Investors and consumers would be reassured by the reduction in the price increase; However, in the current context, this rate should be interpreted with caution. The report covered the period before the outbreak of the war with Iran, which is driving up gas prices and fueling fears of higher utility bills. “Given the rise in energy prices, Wednesday's US CPI February report loses some relevance,” wrote Sal Guatieri,senior economist at BMO Capital Markets, before the BLS report was released. In the first weeks of March, fuel prices such as gasoline and diesel saw increases linked to the conflict in Iran, which could influence inflation data in the coming months. The BLS report is an excellent look at the pre-war inflation context and is monitored by various bodies, including the Federal Reserve (Fed). The central bank kept its rate steady at its most recent meeting in January and is expected to do so again later this month.