Inflation was steady in February before Iran war drove up gas prices

Consumer price growth was steady in February, right before the Iran war rattled global energy markets and sent prices skyrocketing.

The consumer price index rose 0.3% month over month or 2.4% from one year ago, which was in line with what analysts and economists were expecting.

Core inflation, which excludes volatile food and energy prices, was also reported right in line with expectations, rising 0.2% from January or 2.5% from one year ago.

February’s report was produced before the United States and Israel launched a large-scale attack on Iran on the final day of the month.

The critical Strait of Hormuz off Iran’s western coast has been effectively shut down since the war began.

More than 20% of the globe’s supply of oil typically transits through the waterway to reach the international markets. As a result, the price of U.S. crude oil has increased more than 20% since the first strikes. Retail gas prices have also soared more than 50 cents.

Also in February, the Supreme Court struck down many of President Donald Trump’s tariffs, ruling that he exceeded his presidential authority when he imposed country-specific emergency tariffs last year. While Trump has since replaced some of these tariffs with a global 10% duty, the impact on prices is not yet clear.