U.S. Inflation Slows Slightly, But Tariffs Could Reverse Progress

February inflation data shows modest cooling, but new tariffs and rising costs in key sectors may reignite price pressures.

The Consumer Price Index (CPI) for February is expected to show a 2.9% year-over-year increase, down from 3% in January, marking the first decline in five months.
Core inflation, excluding food and energy, is also projected to ease slightly to 3.2%, but both figures remain well above the Federal Reserve's 2% target.
President Trump's tariff policies, including new duties on steel, aluminum, and other imports, are raising concerns about higher prices and potential economic slowdown.
Egg prices, which spiked dramatically due to avian flu, have begun to decline, but overall food costs are still rising, straining household budgets.
The Federal Reserve is expected to hold off on interest rate cuts at its upcoming meeting, with future monetary policy hinging on inflation trends and economic growth risks.