Washington (AP)-the inflation of the US delayed last month for the first time since September and a benchmark for underlying inflation fell to a low point of four years, even if widespread rates are in danger of sending prices higher.
The consumer price index rose by 2.8% in February of a year ago, the report of Wednesday of the labor department turned out to be 3% last month. Key prices, which exclude the volatile categories for food and energy, rose 3.1% compared to a year earlier, compared to 3.3% in January. The concise figure is the lowest since April 2021.
The decreases were expected larger than economists, according to a survey by factset of the data provider. Yet inflation remains above the target of 2% of the Federal Reserve. And most economists expect inflation to be increased this year if Trump’s rates are in operation.
The report “is encouraging news, although it doesn’t tell us much about where inflation is going,” said Oen Klachkin, national financial markets -economist, in an e -mail. “With rates that are possible to push the goods prices higher … we see inflation risks as tilted.”
Inflation was also much lower than expected on a monthly basis. Consumer prices rose by 0.2% in February compared to the previous month, at a large jump of 0.5% in January. And the core prices only rose 0.2%, under the increase of 0.4% in January. Economists watch core prizes because they are usually a better guide for the future path of inflation.
A sharp fall in the air rates, which just fell 4% in February of the previous month, helped to lower total inflation. The rental price increases also delayed and the costs of hotel rooms and car insurance rose much slower in February than last month. The price of new cars fell last month compared to January.
The prices of the supermarket were unchanged last month from January, which brought some lighting to consumers who struggled with a jump of 25% in the supermarket prices from four years ago. However, the costs of eggs increased by 10.4% in February compared to the previous month and are almost 60% more expensive than a year ago.
Avian Flu has forced farmers to slaughter more than 160 million birds, including 30 million in January. Average egg prices reached $ 5.90 per dozen nationwide in February, a record high. The price was for decades less than $ 2 per dozen before the disease struck.
How big an impact of Trump’s rates will have on prices will remain unclear for the time being. The tasks have roasted financial markets and can greatly delay the economy, and some analysts see the chance that a recession will increase.
On Wednesday, Trump raised the import of the US on all steel and aluminum input to 25% each. Some companies that use steel already see their costs rising and depending on how long they stay in place, they can increase prices for cars, devices and electronics. The European Union responded almost immediately in kind to the steel and aluminum tasks and announced retaliatory trade with new rates for American industrial and farm products.
