The consumer price index -- a gauge of inflation -- came in at 2.8 percent for February as well, cooler than expected but still some distance from officials' two percent target.
This boosts expectations that the Fed would proceed cautiously as it seeks to lower inflation sustainably.
Inflation is "likely to remain above target through the rest of the year given the impetus from tariffs," ING analysts expect.
They warned in a recent note that the use of levies could "escalate significantly" as Trump seeks to bring manufacturing back to US shores, potentially triggering price hikes.