Inflation held steady in February, though rising oil prices tied to tensions in the Middle East could push consumer costs higher in the months ahead.

Consumer prices rose 2.4 percent from a year earlier, matching January’s annual pace, according to data released Wednesday by the U.S. Bureau of Labor Statistics. Prices increased 0.3 percent from the previous month, while core inflation, which excludes volatile food and energy prices, rose 2.5 percent from a year earlier and 0.2 percent on a monthly basis.

The February report continued a recent run of inflation readings that have come in roughly in line with or slightly below economists’ expectations, suggesting price pressures may be easing gradually. But that trend could be short-lived as the Iran conflict keeps energy prices elevated, raising the risk of renewed inflation.

“That puts inflation closer to the Fed’s target,” said Abhi Gupta, associate director of macroeconomic analysis at the Yale Budget Lab. Gupta noted that housing inflation slowed to its lowest level in several years while overall core inflation remained stable.

Housing costs, which account for roughly one-third of the CPI basket, slowed more than expected in February. Shelter prices rose 0.2 percent, their smallest increase in several years. Housing inflation tends to move more slowly than other prices because the government’s measurement of rents reflects changes in the housing market with a delay.

Food prices rose 0.4 percent during the month, while energy prices increased 0.6 percent, driven largely by higher fuel costs.

“Every time I go to the grocery store, it feels like I’m spending more than I expect,” said Sarah Kim, an analyst at Nomura, while shopping at a Whole Foods Daily Shop in Midtown. “I’ve started buying less or switching brands just to keep my bill down.”

Energy could become the main driver of inflation in the coming months as oil prices rise amid the escalating Iran conflict.

“The February report reinforces the view that inflation had been on a gradual disinflationary trend before the recent energy shock,” said Kathy Bostjancic, chief economist at Nationwide. “But the disruption to energy supplies raises the risk that inflation could accelerate in the coming months before easing later in the year.”

The report comes ahead of this month’s meeting of the Federal Open Market Committee (FOMC), when officials will decide whether to adjust interest rates. While the Consumer Price Index receives the most attention, policymakers rely more heavily on the Personal Consumption Expenditures price index (PCE), the Fed’s primary inflation gauge which captures a broader range of consumer spending and adjusts as households shift what they buy.. The next PCE report is scheduled for March 13.

Financial markets showed little immediate reaction to the report, which largely matched economists’ forecasts. Investors are instead focused on whether rising energy costs will feed through into higher transportation, food and housing prices. 

“At the very least, expect higher energy prices in the next inflation report,” said Gupta.