U.S. Inflation Slows in February, But Tariffs Pose New Risks

Consumer prices rose 2.8% annually in February, but new tariffs from the Trump administration are expected to drive inflation higher in the coming months.

The Consumer Price Index (CPI) rose 2.8% in February, down from 3% in January, marking the first decline in five months, according to the Labor Department.
Core inflation, which excludes volatile food and energy prices, also eased slightly to 3.1% annually, compared to 3.3% the previous month.
President Trump's newly implemented tariffs, including 25% duties on steel and aluminum and 20% on Chinese imports, are expected to elevate consumer prices in sectors like furniture, apparel, and electronics.
Economists predict the tariffs may add nearly a full percentage point to inflation by the end of the year, potentially complicating the Federal Reserve's efforts to achieve its 2% inflation target.
The Federal Reserve is unlikely to cut interest rates at its upcoming meeting, as officials monitor the economic impact of the tariffs and the risk of a potential recession.