US Core CPI Tops Estimates, Pressuring Fed as It Weighs Hike

  • Underlying gauge rose 0.5% in February, most in five months
  • Shelter accounted for more than 70% of overall monthly gain
Core Consumer Prices Rose More Than Forecast in February
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Underlying US consumer prices rose in February by the most in five months, forcing a tough choice for Federal Reserve officials weighing still-rapid inflation against banking turmoil in their next interest-rate decision.

The consumer price index, excluding food and energy, increased 0.5% last month and 5.5% from a year earlier, according to Bureau of Labor Statistics data out Tuesday. Economists see the gauge — known as the core CPI — as a better indicator of underlying inflation than the headline measure.