(GoRealNewsNow.com) – Confounding many leftist doomsayers who anticipated chaos amid rising tariffs, Americans faced an unexpected calmness as the U.S. economy’s February inflation rate stood at 2.8%.
Despite this slight dip in the consumer price index (CPI), inflation remains far above the Federal Reserve’s target of 2%.
According to the Bureau of Labor Statistics, inflation cooled slightly in February, with the CPI increasing by 0.2% from the previous month and 2.8% annually.
These figures came in lower than market expectations, providing a brief moment of relief for struggling American households. However, prices remain substantially higher than when President Trump left office in 2021.
Core inflation, which excludes volatile food and energy prices and is considered a more accurate measure of underlying inflation trends, rose 0.2% for the month and 3.1% from a year ago.
These persistent inflationary pressures continue to strain U.S. households, with lower-income families bearing the brunt of the economic hardship as their dollars stretch less far at grocery stores and gas pumps.
The food sector saw mixed results, with overall food prices increasing by 0.2% in February. While home food prices remained unchanged monthly, they are still up 1.9% from last year.
Most alarming is the price of eggs, which skyrocketed 10.4% in just one month and a staggering 58.8% over the past year, partly due to an avian flu outbreak.
Meanwhile, fruit, vegetable, and nonalcoholic beverage prices declined by 0.5%, and dairy prices fell by 1%.
Housing costs continue to burden American families, with the shelter index rising 0.3% for the month and 4.2% over the past year.
Although this marks the smallest 12-month increase since December 2021, housing remains one of the most significant contributors to inflation.
Used vehicle prices increased by 0.9%, and apparel rose by 0.6%, further stretching family budgets.
Energy prices increased by 0.2% in February, with natural gas prices rising by 2.5% despite gasoline prices dropping by 1%.
Insurance costs continue to soar, with motor vehicle insurance rising 0.3% monthly and a crushing 11.1% annually.
One bright spot was airline fares, which decreased by 4% in February and were down 0.7% year-over-year.
The report comes amid growing concerns about economic uncertainty related to shifting trade policies.
President Trump’s protective tariffs on steel, aluminum, and Chinese goods have created some market volatility, though they were designed to protect American industries and workers in the long run.
While critics claim these policies could destabilize the economy, the White House has firmly dismissed such concerns.
In addition, Federal Reserve Chair Jerome Powell has indicated that interest rates would likely remain unchanged between 4.25% and 4.5%, citing the economy’s current stability.
Powell acknowledged “heightened uncertainty” about the economic outlook but emphasized a cautious approach.
As hardworking Americans continue to feel the squeeze of higher prices, February’s slight cooling of inflation offers little comfort.
The persistent inflation above the Federal Reserve’s 2% target serves as a stark reminder of the economic damage inflicted by years of unchecked government spending and failed economic policies that have eroded the purchasing power of American families.
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