Inflation held steady in February, according to Fed's preferred gauge

Inflation held steady in February compared to a year ago, according to a release from the Federal Reserve's preferred gauge of price increases.

The reading matched economists' expectations.

Consumer prices climbed 2.5% in February compared to a year ago, registering at a level slightly higher than the Fed’s target rate of 2%, Commerce Department data on Friday showed.

Core inflation -- a closely watched measure that strips out volatile food and energy prices -- increased 2.8% over the year ending in February, ticking lower from the previous month, data showed.

The fresh data arrives little more than a week after the Fed opted to leave interest rates unchanged.

Speaking at a press conference after the rate decision, Fed Chair Jerome Powell faulted President Donald Trump's tariffs for a "good part" of recent inflation.

Consumer surveys show rising consumer fears about inflation as Trump imposes tariffs on top trading partners and key industries.

Economists widely expect tariffs to raise prices because importers typically pass along a share of the tax burden along to consumers in the form of higher costs.

This is a developing story. Please check back for updates.