US Inflation Cools to 2.8% in February
Inflation rate hits 2.8% in February, less than expected
Prices for goods and services moved up less than expected in February, providing some relief as consumers and businesses worry about the looming impact tariffs might have on inflation, the Bureau of Labor Statistics reported Wednesday.
The consumer price index, a wide-ranging measure of costs across the U.S. economy, ticked up a seasonally adjusted 0.2% for the month, putting the annual inflation rate at 2.8%, according to the Labor Department agency. All-item CPI had increased 0.5% in January.
Inflation slowed slightly to 2.8% in February ahead of Federal Reserve meeting
Inflation cooled slightly in February even as the pace of price growth remained well above the Federal Reserve's goal ahead of the central bank's policy meeting next week.
The Labor Department on Wednesday said that the consumer price index (CPI) – a broad measure of how much everyday goods like gasoline, groceries and rent cost – increased 0.2% in February compared with last month, while it rose 2.8% on an annual basis.
US inflation cooled in February, but Trump’s tariff plans and trade war loom
Inflation slowed more than expected in February and cooled for the first time in four months, but that progress may be short lived as President Donald Trump ramps up his trade war, which threatens to increase prices for Americans.
The Consumer Price Index, which measures price changes across commonly purchased goods and services, was 2.8% for the 12 months ended in February, a cooldown from the 3% annual rate notched in January, according to data from the Bureau of Labor Statistics released Wednesday. On a monthly basis, prices rose 0.2%, versus 0.5% in January.