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

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.

Wholesale Producer Price Index inflation stayed flat in February while economists surveyed by Dow Jones had expected a 0.3% increase. The Bureau of Labor Statistics said Thursday annual PPI inflation was 3.