US Annual inflation fell to 2.8% in February, from 3.0% in January and MoM inflation fell to 0.2% in February, from 0.5% in January.
Annual core inflation (excl. energy and food) fell to 3.1% in February from 3.3% in January.
US MoM core inflation fell to 0.2% in February, down from the 12-month high of 0.4% in January.
Isaac Stell, Investment Manager at Wealth Club said, “After four months of rising prices, February offered what is likely to be a very short reprieve as annual inflation in the US crept down a notch to 2.8%.
“The cries of continuing US exceptionalism have quickly dampened to a whisper as Trump’s tariff war is now in full swing. With a temperamental President throwing his weight around attaching tariffs to everything from steel and aluminium to cars and energy, there is likely to be a return to higher inflation as the increased tariffs feed almost immediately through to domestic prices.
“Fears of a recession, unthinkable a few months ago, are now beginning to surface as the whipsawing on policy dents confidence and creates uncertainty for businesses and consumers alike.
“The Federal Reserve has the unenviable task of trying to steer the US economy through this turbulent period, a job made all the harder by an economy showing tentative signs of slowing, just as worries mount about increased inflation. The Fed’s next meeting, scheduled for 19th March, will offer the first real glimpse into implications of tariffs for monetary policy; I doubt investors and the public are going to like what they hear.”
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