Inflation rises in February to 3.2% year-over-year

The Department of Labor reported that inflation reached 3.2% in February, up from 3.1% in January. The base reading, which excludes volatile food and energy prices, was 3.8%.

"The housing index increased in February, as did the gasoline index," the Labor Department said in the report obtained by AFP.

Together, both contributed more than 60% of the rise in the general monthly index. Likewise, the report detailed that between January and February, inflation rose 0.4%, also increasing compared to the previous month.

Fed could begin to reduce interest rates

According to AFP, "analysts expect the Federal Reserve (FED) to focus on underlying inflation when deciding the best time to start reducing interest rates."

The information becomes known as the Fed has taken a series of measures with the intention of avoiding interest rate increases in 2024. In that sense, the Federal Reserve maintained that it "could begin to reduce rates this year, as long as there is continued progress in combating inflation."