February Inflation Report Expected to Show Slight Decline but Remains Above Fed Target

Economists forecast a modest drop in annual inflation to 2.9%, with core inflation at 3.2%, as concerns over tariffs and economic uncertainty grow.

The Consumer Price Index (CPI) report for February, set to release Wednesday, is projected to show a 0.3% monthly increase in both overall and core inflation measures.
Annual inflation is expected to decline slightly to 2.9%, with core inflation (excluding food and energy) at 3.2%, both above the Federal Reserve's 2% target.
Tariffs proposed by President Trump on Canadian and Mexican goods may drive up prices further, adding uncertainty to the inflation outlook.
A survey indicates inflation remains the top financial concern for Americans, with many reporting rising costs for groceries, utilities, and fuel in recent months.
The Federal Reserve faces a challenging decision as inflation remains elevated, with economists predicting it may hold interest rates steady at its upcoming meeting.