Here’s the inflation breakdown for February 2025 — in one chart
cnbc.comInflation receded in February on the back of easing price pressures for consumer staples like gasoline, groceries and housing, amid worries that President Donald Trump's tariff policies could stall progress.
The consumer price index rose 2.8% for the 12 months ended in February, the U.S. Bureau of Labor Statistics reported Wednesday. That's down from 3% in January.
The deceleration is encouraging after fears in recent months that inflation had become entrenched and wasn't falling back to target.
«Progress is bumpy,» said Michael Pugliese, senior economist at Wells Fargo Economics. «It's not a linear path down. There are still risks, but there are no signs of a reacceleration with the data in hand.»
The consumer price index measures how quickly prices rise or fall for a basket of goods and services, from haircuts to coffee, clothing and concert tickets.
CPI inflation has declined significantly from its pandemic-era high of 9.1% in June 2022. However, it remains above the Federal Reserve's target. The central bank aims for a 2% annual rate over the long term.
«Excluding any major policy changes, I'd expect [inflation] to continue gradually slowing,» Pugliese said. «Of course, the big question on everyone's mind is, what are the big policy changes that will happen over the course of this year?»
Trump imposed a fresh round of tariffs on foreign steel and aluminum imports on Wednesday, triggering retaliatory tariffs from Europe on about $28 billion of U.S. goods starting in April. The Trump tariffs follow on others he's already imposed on Canada, China and Mexico, the three largest trading partners of the U.S.
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