US consumer inflation cools slightly to 2.8% in February

[WASHINGTON] US consumer inflation inched lower in February according to government data on Wednesday (Mar 12), in the first full month of Donald Trump’s White House return – but concerns remain over stubborn price growth as jitters flare over the president’s trade policies.

The consumer price index (CPI) came in at 2.8 per cent last month from a year ago, down from 3.0 per cent in January, said the Department of Labor.

While easing inflation would be a sign of relief for policymakers, the latest reading is the lowest in just four months – signalling a longer road ahead to bringing price increases back to officials’ two per cent target.

The world’s biggest economy is also grappling with fears of a downturn – and near-term inflation – sparked by Trump’s expanding slate of tariffs.

On Wednesday, Trump’s latest salvo of 25 per cent levies on steel and aluminium imports kicked in, sparking vows of firm responses from key US trading partners.

Between January and February, the CPI picked up 0.2 per cent, Labor Department data showed, also a cooldown from January’s 0.5 per cent figure.

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Excluding the volatile food and energy categories, the index was up 3.1 per cent from a year prior, also an improvement from before. AFP