US inflation remained unchanged at 2.4 per cent in February, matching economists' forecasts, according to the Bureau of Labor Statistics. The core inflation rate, excluding volatile food and energy prices, held steady at 2.5 per cent. The data, however, was collected before the recent surge in energy prices following the US-Israel-Iran conflict, which is expected to push March inflation higher.

Energy prices have jumped sharply since the Middle East conflict began, with Brent crude up about 25 per cent and West Texas Intermediate rising 30 per cent. This has driven petrol prices higher for 11 consecutive days. The US Energy Department warned that prices at the pump are unlikely to return to pre-war levels before the end of next year. Analysts predict inflation could reach 2.9 per cent in March if crude prices remain elevated.

The inflation figures come ahead of next week's Federal Reserve meeting, where the central bank is expected to maintain interest rates between 3.5 per cent and 3.75 per cent. The recent energy price surge has led traders to scale back expectations for rate cuts, now anticipating only one or two quarter-point reductions instead of the two or three previously expected. Housing-related inflation, steady at 3 per cent, was the largest contributor to February's inflation figure.