An inflation gauge closely watched by the Federal Reserve remained high last month even before the impact of most tariffs has been felt, the Associated Press reports. Americans’ spending rebounded in February after a steep fall, and incomes increased.
Friday’s report from the Commerce Department showed that consumer prices increased 2.5% in February from a year earlier, matching January’s annual pace. Excluding the volatile food and energy categories, so-called “core” prices rose 2.8% compared with a year ago, higher than January’s figure of 2.7%.
Inflation remains a top economic concern for most Americans, even as it has fallen sharply from its 2022 peak. Donald Trump promised in his ascension to the presidency to quickly bring down inflation, but the yearly rate is higher now than in September, when it briefly touched 2.1%.
