Consumer prices rose 2.8% compared to February compared to a year ago, the first one to decrease slightly throughout the month under President Donald Trump and offered welcome news for markets stopped by the Global Trade War. More inflation was cooled over economists.
The 3% inflation rate recorded in January slows down the price, although the inflation is about percent more than the target of 2% of the Federal Reserve.
Egg prices, a closely seen symbol of the price increase, increased by 58% in February compared to a year ago, which had intensified from last month. Bird flu has reduced the supply of eggs, raising prices more.
The Department of Justice investigated egg producers to find out whether market practices have contributed to the price hike, a source familiar to ABC News.
A report of inflation came a few hours after the 25% tariff was applied on steel and aluminum, to inspire proximity to anti-counter-retaliation from the European Union and to mark the latest growth of business tension.
Tariffs are widely expected to increase prices for consumers, as importers usually pass with an additional cost part for shopkeepers.
The stock market has diverted to Trump on Mexico, Canada and China last week after being tariffs, warning of a possible economic recession on Wall Street. Within days, Trump delayed some tariffs in Canada and Mexico.
On Wednesday, the report can soften the pressure on the Federal Reserve, which takes responsibility for keeping inflation under control.
Federal Reserve Chair Jerome Powell said last week that the possibility of the administration’s tariff scheme will increase prices for American shopkeepers and retailers
The scale and duration of the tariff is not clear, but a part of taxes on imports will probably reach consumers, Powell told an economic platform in New York City last week.
“We are in a phase where we are still very uncertain as to what will be targeted, how long, at what level,” Powell said. “But the possibility is that some people will find their way. It will be killed to exporters, importers, retailers and consumers to some extent.”
On several occasions in recent times, the White House refused to rule a potential recession, saying that tariff would require “duration of transition”.
A worker moves steel products to North York Iron, a steel supplier in Toronto, Ontario, Canada, 11 February, 2025.
Through Coal Better/AFP Getty Image
On Friday, a solid, although the report of disappointing jobs raised concerns between some observers.
Employers hired 151,000 workers last month, which was reduced by the expectations of 170,000 jobs. The unemployment rate stood up to 4.1%, which remains historically a low figure.
The Trump administration slapped 25% tariffs on goods from Mexico and Canada, as well as 10% tariff on imports from China. The latest round of duties on Chinese goods doubled the initial set of tariffs imposed on China last month.
A day later, Trump released a month’s delay for tariffs on auto -related goods from Mexico and Canada. The United States-Maxico-Canada Agreement from Mexico and Canada, or USMCA, soon expanded carving-out with an additional one month break for goods with a free trade agreement.
On Tuesday, Trump announced a plan to add another 25% tariff on Canadian steel and aluminum, making a total of 50%. Trump said the step came in response to the dangers made by Ontario to cut power in some parts of America.
Hours later, Ontario Premier Dag Ford issued a joint statement with US Commerce Secretary Howard Lutynik on X, announcing a 25% surcharge suspension on electricity sent to the US.
The tariff slapped over Canada, Mexico and China is widely expected to increase prices paid by American shopkeepers, as importers usually pass with consumers part of those high taxes.
In February, the Nonpartison Conference Board said that a major gauge of consumer confidence had recorded its biggest monthly decline since August 2021.
The share of consumers expecting a slowdown within the following year increased to a height of nine months, showing data. The report said that a growing part of consumers believes that the job market will deteriorate, the stock market will decline and interest rates will increase.
ABC News’ Catherine Folders and So Young contributed to this report.
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