February Inflation Slows to 2.8%, Raising Hopes for Future Fed Rate Cuts

Easing price pressures spark optimism, but trade uncertainty and regional disparities complicate the outlook.

The Consumer Price Index (CPI) rose 2.8% year-over-year in February, marking a slowdown from January's 3% increase and the lowest rate in four months.
Core inflation, which excludes volatile food and energy prices, declined to 3.1% annually, its slowest pace since April 2021.
Falling energy prices and easing shelter costs contributed to the decline, though food prices, especially eggs, remain elevated compared to pre-2024 levels.
Economists warn that new tariffs imposed by the Trump administration could reverse disinflationary trends and create uncertainty for businesses and consumers.
The Federal Reserve is expected to hold interest rates steady in March but may consider rate cuts by June if inflation continues to ease and labor market conditions remain stable.