February Sees Persistent High Inflation in the US

Hey there! So here’s the scoop from Washington—last month’s inflation numbers are still looking pretty high.But guess what? Americans decided to open their wallets again in February after a rough January.

The latest report from the Commerce Department reveals that consumer prices jumped by 2.5% year-over-year in February, keeping pace with January’s figures. If we take out the often unpredictable food and energy sectors, core prices saw a rise of 2.8%, slightly up from January’s rate of 2.7%. this core index is what economists keep an eye on sence it gives a clearer picture of future inflation trends.

Despite some relief from last year’s peak inflation rates, many folks are still feeling the pinch at checkout counters across America. Remember how Donald Trump capitalized on public frustration over rising costs during his campaign? Well, even now, inflation is higher than it was back in September when it dipped to around 2.1%.

PCE contributions by category show most areas increased; however, goods have lessened their impact on overall inflation levels—it’s still “stubborn.” pic.twitter.com/1ZMKfsgLNC — Kathy Jones (@KathyJones) March 28,2025

The former president has imposed hefty tariffs—20% on Chinese imports and an additional tax of up to 25% on steel and aluminum products—and just recently announced another potential tariff hike for imported cars set at another whopping 25%. Economists predict these tariffs could push inflation even higher this year as they ripple through the economy.

This past February saw prices increase by about 0.3% compared to January—a repeat performance from that month—but core prices surged by an remarkable 0.4%, marking the biggest jump we’ve seen in over a year!

Spending habits shifted as Americans ramped up their expenditures by about 0.4% in February following one of the steepest drops we’ve seen in four years during January.

However, confidence among consumers and businesses has taken quite a hit since those tariffs rolled out under Trump’s administration; recent surveys indicate that American optimism regarding economic prospects has plummeted to its lowest point in twelve years as of March 25th! A Pew Research Centre poll revealed that around two-thirds of respondents view inflation as a “vrey big problem.”

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