#CPIWatch CPI Watch: February 2026 Snapshot
The latest inflation data shows a stubborn economy. While the headline rate holds steady, "sticky" costs in housing and food are keeping central banks on high alert.
The Core Data
* Headline CPI: 2.7% (Steady YoY)
* Core CPI: 2.6% (Slight cooling)
* The Problem Child: Shelter & Dining Out remain high, offset only by dipping energy prices.
Market Impact
* Rate Cuts on Hold: High service inflation makes a March interest rate cut unlikely.
* Market Pivot: Investors are moving from "growth" tech stocks to "defensive" sectors like healthcare and utilities.
* Future Risks: New trade tariffs and shipping volatility threaten to push goods prices back up by Q2.
Bottom Line
Inflation isn't "spiraling," but it isn't hitting the 2% target yet. For your wallet, this means borrowing costs (loans/mortgages) will likely stay high through the spring.
