The U.S. Labor Department released consumer price inflation data on Tuesday. The U.S. consumer price inflation rose 0.2% in February, in line with expectations, after a 0.7% decline in January.

The increase was driven by higher gasoline prices. Gasoline prices rose 2.4% in February, for the first time since June 2014. It was the largest rise since December 2013.

Food prices climbed 0.2% in February, shelter expenses rose 0.2%, while apparel prices increased 0.3%.

On a yearly basis, the U.S. consumer price index climbed to zero in February from -0.1% in January. Analysts had expected the index to remain unchanged at -0.1%.

The U.S. consumer price inflation excluding food and energy gained 0.2% in February, exceeding expectations for a 0.1% increase, after a 0.2% rise in January.

On a yearly basis, the U.S. consumer price index excluding food and energy climbed to 1.7% in February from 1.6% in January. Analysts had expected the index to remain unchanged at 1.6%.

The Fed noted last week that it would hike interest rate when it is "reasonably confident" that low inflation is on track to return to its 2% target and as long as the labour market keeps strengthening.