Consumers expect prices to rise at an annual rate of 3.9% over the next five to 10 years, the highest in more than three decades.

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.

As CPI report shows inflation continued at 2.8 percent in February, tariffs fueled worries of another recession, which President Donald Trump has declined to rule out.