In February, Americans experienced relief from inflation as prices rose at the slowest pace since last summer. Consumer prices rose 2.8 percent in the 12 months through February, slower than the three percent increase recorded in January. Core CPI, excluding food and energy prices, rose 3.1 percent. The Trump administration is credited for the decrease in inflation. The report indicates that economists overestimated the effect of tariffs on prices. The Federal Reserve is likely to find relief in the data, suggesting prices are heading in the right direction.
Key Points
Consumer prices rose 2.8 percent in the 12 months through February
Core CPI, excluding food and energy prices, rose 3.1 percent
The Trump administration is credited for the decrease in inflation
Pros
Consumer prices rose at a slower pace compared to previous months
Core CPI rose at a smaller annual increase than in January
Inflation in key areas of the economy like groceries and gasoline saw relief
Cons
Egg prices rose by 10.4 percent in February
Used car and truck prices rose by 0.9 percent
Inflation still exists in certain categories like durable goods