US Inflation Slows to 2.8%
U.S. consumer prices increased less than expected in February, but the improvement is likely temporary against the backdrop of aggressive tariffs on imports that are expected to raise the costs of most goods in the months ahead.
The consumer price index rose 0.2% last month after accelerating 0.5% in January, the Labor Department's Bureau of Labor Statistics said on Wednesday.
In the 12 months through February, the CPI increased 2.8% after climbing 3.0% in January. Economists polled by Reuters had forecast the CPI gaining 0.3% and advancing 2.9% year-on-year.
Tariffs will play its part it is just beginning. Unless they reduce VAT and other taxes to control consumer goods price escalation trend.