Inflation Steady Before Iran War
February's CPI showed inflation holding at 2.4%, but the Iran conflict's oil price spike poses an upward risk for March.
The unchanged inflation rate suggests the Federal Reserve might delay interest rate cuts. Policymakers will likely want to see a clearer trend before adjusting monetary policy. The energy sector will be a key area to watch. Oil prices have already jumped since the escalation of the conflict. Food prices could also see increases if transportation costs rise. Supply chain disruptions could compound the inflationary pressure.
