U.S. inflation remained steady at 2.4% in February, matching January's annual rate as the Consumer Price Index showed only modest price increases before the Iran conflict erupted. The Bureau of Labor Statistics reported that overall prices ticked up 0.3% for the month, with core inflation holding at 2.5% year-over-year.

Food prices drove much of February's increase, rising 0.4% during the month and 3.1% annually. Grocery prices climbed 0.4% while restaurant meals jumped 3.9% year-over-year. Energy prices rebounded modestly with gasoline up 0.8% after January's 3.2% decline, though this was before oil prices surged following U.S.-Iran military actions.

Economists warn that the economic impact of the Middle East conflict will linger despite any potential resolution. Oil prices have already whipsawed dramatically, with Brent crude briefly hitting $119.50 per barrel before retreating. The Federal Reserve faces a challenging situation with sticky inflation and softening labor markets, as policymakers must balance concerns about rising prices against signs of economic weakness.