Inflation receded in February for the first time since September, driven by easing price pressures for gasoline and shelter.
The U.S. annual inflation rate slowed to 2.8 percent last month. Core inflation, which strips the volatile food and energy components, declined to 3.1 percent, the lowest since April 2021.
Next month’s inflation reading is poised to spotlight further progress from falling energy prices.
Following the latest numbers, economic observers have wondered if this trend will persist amid on-again-off-again tariffs and if the Federal Reserve will respond to favorable data by restarting its rate-cutting cycle sooner than expected.
“The February Consumer Price Index was better than expected—but how long will this last? The widespread imposition of tariffs represents upside risks to inflation in the months ahead,” said Greg McBride, Bankrate’s chief financial analyst, in a statement to The Epoch Times….