US consumer prices rose 2.8% over the past 12 months, a slowdown from January’s 3%. The Bureau of Labor Statistics reported Wednesday that easing price pressures for staples like gasoline, groceries, and housing has contributed to the decline.
The deceleration is encouraging after fears that inflation had become entrenched. “Progress is bumpy,” said Michael Pugliese, senior economist at Wells Fargo Economics. “It’s not a linear path down.”
Inflation remains above the Federal Reserve’s target of 2% annually. Despite this, economists expect gradual slowing of inflation, excluding major policy changes.
Steel and aluminum tariffs, imposed by President Trump on Wednesday, have triggered retaliatory tariffs from Europe. Economists warn that these tariffs could stall progress on inflation and make goods more expensive for consumers.
Egg prices saw the largest increase in February, with a 59% rise over the past year. The outbreak of avian flu has reduced egg supply, while instant coffee prices have increased about 9%. However, grocery inflation is relatively low at 1.9%, and gasoline inflation was down 3% in the past year.
Shelter inflation, which accounts for a significant portion of the CPI, reached its lowest level since December 2021, at 4.2%. Despite this, housing prices remain a concern, as economist Gargi Chaudhuri notes that “housing inflation is historically the ‘stickiest’ component of inflation.”
Source: https://www.cnbc.com/2025/03/12/heres-the-inflation-breakdown-for-february-2025-in-one-chart.html