However, the February report does not factor in the potential shocks to the economic system caused by surging oil prices due to the conflict in Iran. Economists say it's a very positive sign about where inflation was before the war.
"The Fed didn't just do a good job. They did an amazing job and should be credited for the soft landing and getting inflation back under control," said John Coleman, an economics professor with the Duke Fuqua School of Business.
According to Coleman, oil prices could be a key focus for the Fed next week, as a prolonged rise in prices could lead to higher consumer costs across the board.
"That's going to be foremost on their agenda is monitoring very carefully how the economy is responding, will respond to the rise in the price of oil," he said.
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In downtown Raleigh, Carey Kidd, owner of Element Gastropub, noted they are still paying higher costs for many ingredients compared to several years ago. He remains optimistic about the economy and has seen increased foot traffic. However, deciding when to pass on increased costs to customers has been challenging.
"We kind of eat it because people are still having a hard time coming downtown to eat and spend money on stuff," he said. "So, we want to make sure that they want to come out for what they're used to. Restaurant business has fine margins. So we're still playing with those fine margins, but we just make it work."
Kidd is also closely monitoring the rising costs of powering his business as oil prices increase.
"Power is expensive," he said. "Especially in the last couple of years. Inflation has increased that like crazy. So, you know, we monitor the best we can. We have to use it. We usually cut where we can. But that's just kind of like one of those necessary things that you have to have no matter what."
The Federal Reserve is scheduled to meet next week, but economists anticipate no change to interest rates. CPI reports for March and April are expected to offer more insight into the effects of the war in Iran.
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