Inflation Ticked Down Faster Than Expected Ahead Of Tariff Turmoil | Global News Avenue

A key inflation measure gradually decreased in February, A month before a round of President Donald Trump’s widespread tariffs begin and potentially raise the cost of living.

The Bureau of Labor Statistics said Wednesday that the Consumer Price Index measures the cost of living in the 12 months between February and February, up 2.8% from January’s annual 3%. “Core” inflation does not include volatile prices for food and energy, falling from 3.3% to 3.1% per year. According to the survey of economists on economists Dow Jones News and Wall Street Journal.

After a low profile, inflation still exceeds the Fed’s annual target of 2% but is moving in the right direction. But President Donald Trump’s tariffs on major U.S. trading partners come into effect in March, targets and tariff levels in these countries Fast and unpredictable changes. Economists predict tariffs will Push up prices For a wide range of products, the amount of increased import taxes threatened by Trump is actually implemented.

Amid all uncertainties, Fed officials show that they are Don’t want to do any big moves. For example, lower the benchmark interest rate of the central bank. The Fed maintained major Fed funding rates at higher levels than usual, which put an increase in borrowing costs on various loans to stop borrowing, slow down the economy and calm inflation.

Wednesday’s report shows that prices are still accelerating faster than those used to before the pandemic, continuing to squeeze home budgets. However, some important items are cheaper, which reduces the overall inflation rate. Gasoline fell 1% from the previous month, and air tickets fell 4% this month. In grocery stores, pork, milk, and many fruits and vegetables became cheaper, offsetting 10.4% of the monthly price of eggs.