The inflation rate last month was slightly lower than forecast by economists, although price increases are still higher than the Fed would like.

U.S. consumer prices increased moderately in February as higher shelter costs were partially offset by cheaper airline fares, giving the Federal Reserve room to keep interest rates unchanged next week while monitoring the economic impact of a trade war.

Inflation eased last month, but the data may offer less comfort to businesses, consumers and the Fed than it otherwise would as looming tariffs may keep prices rising.