After a steep drop in January, today's report points to a consumer who's growing more discerning as the labor market starts to cool, credit access becomes more limited, and higher prices continue to bite.

In February, the core CPI rose 0.4% from January and 3.8% from a year ago.

"The February jobs report doesn't look recessionary. But it does suggest the Fed is getting closer to mission accomplished, calming the hot jobs market that contributed to high inflation."

In January, the PCE price index rose 0.4 percent from December and 2.8 percent from a year prior.

GDP rose at a revised annualized rate of 3.2% in the fourth quarter, compared with a prior estimate of 3.3%.

More numbers are due out before the next FOMC meeting in March, but if they are similar to today's data, the Fed will likely delay any interest rate cuts

The core PCE price index increased just 2.9% in December year-over-year, even with robust holiday spending.

Though the BLS's December jobs report shows an increase in job growth and wage gains that exceeded expectations, it is riddled with caveats about the strength of the labor market.