US inflation slows in February to 2.8%, lower than – Business News
US inflation slowed more than anticipated in February, with core inflation posting its smallest gain since 2021 — though the information was gathered earlier than President Trump started amp up his tariff wars this month.
The Consumer Price Index rose 2.8% over the previous 12 months — beneath the two.9% gain that economists had anticipated and in addition beneath final month’s surprisingly robust 3% studying, the Bureau of Labor Statistics mentioned Wednesday.
Core CPI, which excludes risky food and vitality costs, got here in at 3.1% — the bottom studying since April 2021.
Dow Jones futures rose 223 factors, or 0.5%, on the softer inflation report. S&P 500 futures jumped 0.8% larger, and Nasdaq 100 futures gained about 0.9%.
The Consumer Price Index rose 2.8% over the previous 12 months, in accordance to authorities knowledge. REUTERS
The much less heated report comes as inflation issues have mounted over President Trump’s commerce insurance policies, and investor optimism for rate of interest cuts anytime quickly has dipped.
However, February’s report doesn’t seize the affect from Trump’s tariffs.
President Trump’s threatened tariffs on Canada and Mexico — that are at the moment on a second 30-day pause — and his 20% levy on China have spurred fears of inflation and a potential recession.
Trump’s 25% tariffs on metal and aluminum imports took impact early Wednesday morning. The European Union introduced retaliatory tariffs that can take maintain in April.
Inflation jumped 0.2% in February after advancing 0.5% the month earlier than, in accordance to authorities knowledge. AP
Heightened commerce tensions have spooked traders and stoked volatility in the markets.
The “Magnificent 7” tech shares — Tesla, Nvidia, Alphabet, Meta, Amazon, Apple and Microsoft — have shed more than $1.5 trillion off their mixed valuation for the reason that begin of 2025 after having fun with enormous beneficial properties final yr.
Heated shopper and producer price reviews early final month had some economists warning that fee hikes may even be on the desk.
But the personal consumption expenditures index — the Fed’s most popular inflation gauge — signaled easing inflation later that month.
The Federal Open Market Committee is set to meet on March 18-19, when traders largely anticipate they’ll keep rates of interest the identical in the goal 4.25% to 4.5%, in accordance to CME FedWatch.
