Inflation Slows Nationally, But Trade Policies Raise Concerns

The February Consumer Price Index shows progress on inflation, but new tariffs and economic uncertainty could complicate Federal Reserve rate decisions.

The U.S. Consumer Price Index rose 2.8% annually in February, marking a slowdown from January's 3% increase and the smallest rise in four months.
Core inflation, excluding food and energy, dipped to 3.1%, its lowest level since April 2021, signaling progress in underlying price pressures.
New tariffs imposed by the Trump administration, including increased duties on Chinese, Canadian, and Mexican imports, are expected to drive future inflation and economic uncertainty.
The Federal Reserve is widely expected to maintain its current interest rate range of 4.25%-4.50% at its March meeting, with potential rate cuts predicted later in the year depending on inflation and labor market conditions.
Regional disparities persist, as New England saw a 4.5% annual inflation rate in February, the highest in two years, driven by rising costs for shelter, food, and prescription drugs.

One America News Network