UBS Chief Economist Paul Donovan anticipates that the U.S. February Consumer Price Index (CPI) data will show moderate underlying inflationary pressures, despite recent market volatility. Donovan highlighted the importance of this data for the Federal Reserve's policy decisions, suggesting that the Fed should only react to broad-based price increases. He pointed out that the Fed lacks the tools to address isolated market disruptions and noted that the recent 27% rise in gasoline prices since January will not be reflected in the current CPI data. However, consumers are likely to experience noticeable price hikes in certain grocery items.