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US inflation cooled more than expected in February, with the Consumer Price Index rising 2.8% annually (down from January’s 3%) and 0.2% for the month (down from January’s 0.5%).
This improvement came largely from flat grocery prices and falling gas costs, while egg prices still rose 10.4% for the month but at a slower pace than January’s 15.2% increase. Core inflation (excluding food and energy) also slowed to 3.1% annually.
Despite this positive news, economists warn this cooling may be temporary as President Trump’s expanding trade war and tariffs on Chinese, Canadian, and Mexican goods are expected to push prices higher in coming months.
