Inflation in the U.S. slowed in February: What are the expectations ahead of the Fed meeting?

In February, the Consumer Price Index (CPI) in the U.S. rose below expectations, signaling a slowdown in inflation. According to data released by the U.S. Department of Labor, the CPI increased by 0.2% month-over-month and 2.8% year-over-year. This fell short of economists' expectations of a 0.3% monthly increase and a 2.9% annual rise. Excluding food and energy, the core CPI also rose by 0.2% monthly and 3.1% annually, indicating a general deceleration in price increases.

The inflation report for February is significant as it represents the first comprehensive inflation data under the Trump administration. Trade tensions and tariffs are exerting price pressures, potentially leading to an increase in inflation in the coming months. Economists suggest that these factors are influencing consumer behavior, particularly in the automotive and durable goods sectors, prompting early purchases due to anticipated price hikes.