The inflation rate in the United States showed signs of improvement in February 2025, coming in lower than expected. Core consumer prices, which exclude food and energy, dropped to 3.1%, down from 3.3% in January. This figure is the lowest seen since April 2021 and was below the market expectation of 3.2%.
White House Press Secretary Karoline Leavitt highlighted this positive trend, stating that the economy is moving in the right direction under President Trump. She pointed out that the recent consumer price index (CPI) report indicates inflation is declining, which is a welcome change after a period of rising prices.
According to the Bureau of Labor Statistics, the overall consumer price index rose by just 0.2% in February, leading to an annual inflation rate of 2.8%. The Federal Reserve aims to lower inflation to 2.0%. The report also noted that inflation-adjusted average hourly earnings increased by 0.1% from the previous month and are up 1.2% from a year ago.
Economists had predicted a 0.3% rise in both core and headline inflation, but the actual figures came in slightly lower. A decrease in airfares and gas prices contributed to the easing inflation, which may influence the Federal Reserve’s decisions regarding interest rates in upcoming meetings.
Kay Haigh from Goldman Sachs Asset Management commented on the report, noting that it shows progress in controlling inflation. He suggested that the combination of easing inflation and potential risks to economic growth might lead the Fed to consider lowering interest rates soon.
However, not all experts are optimistic. Kevin Gordon from Charles Schwab cautioned that the impact of tariffs and other policy uncertainties could overshadow the current inflation data.
In addition to these economic indicators, there was a notable increase in egg prices, which rose by 10.4% in February. In response, U.S. Secretary of Agriculture Brooke Rollins announced a $1 billion plan to combat avian influenza and support the poultry industry. She criticized the previous administration for not addressing the issue effectively and assured consumers that help is on the way for those struggling with high egg prices.
Overall, the February inflation report paints a picture of a slowly improving economic landscape, with both challenges and signs of progress.