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.

U.S. Consumer prices rose less than expected in February, with the consumer price index (CPI) rising 0.2% month-on-month and 2.8% on an annual basis. According to a CNBC report, economists surveyed by Dow Jones expected headline CPI to come in at 0.

Economists are bracing for intensifying price pressures and slower growth, posing a challenge for the Federal Reserve.