Inflation persists as Fed mulls cuts

While the Federal Reserve expects to cut interest rates this year, inflation so far has refused to go along.

Consumer prices in the United States rose 3.2 percent for the 12 months ending February, a slight increase over the 3.1 percent in January, according to the US Labor Department's Bureau of Labor Statistics in its monthly Consumer Price Index report released on Tuesday. Analysts had expected inflation to remain at 3.1 percent.

The all-items-less-food-and-energy index rose 3.8 percent over the last 12 months. The energy index decreased 1.9 percent for the 12 months ending February, while the food index increased 2.2 percent over the last year.