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Inflation increased 0.2 percent in February and 2.8 percent over the past year, according to new Bureau of Labor Statistics data released on Wednesday, Mar. 12. The yearly inflation number remained well above the Federal Reserve's two-percent target.
The monthly increase was smaller than January's jump of 0.5 percent. February's figures were also a little lower than Dow Jones expectations, CNBC reported.
Core inflation, which excludes food and energy, rose 0.2 percent in February, bringing the 12-month rate to 3.1 percent. Housing costs were the biggest factor in February's increase, with shelter rising 0.3 percent.
Gasoline prices fell 1.0 percent, helping offset a jump of 2.5 percent in natural gas and an increase of 1.0 percent in electricity. Airline fares saw the steepest drop, plunging 4.0 percent.
Food prices edged up 0.2 percent and restaurant meals rose 0.4 percent. Grocery prices remained flat, limiting the damage many families have been experiencing at the supermarket.
The new inflation data as Trump continues escalating trade wars with global partners. His 25 percent tariffs on steel and aluminum took effect on March 12, along with 20 percent duties on Chinese imports.
The European Union has already hit back with $28.33 billion in tariffs on US goods starting in April.
"We deeply regret this measure [by the U.S.]," said European Commission President Ursula von der Leyen. "Tariffs are taxes. They are bad for business and worse for consumers. They are disrupting supply chains, they bring uncertainty for the economy, jobs are at stake, prices are up and nobody needs that. Neither side needs that."
Retailers like Best Buy and Target have warned that consumer prices could rise if supply chain costs increase.
Along with the trade wars, the labor market is showing troubling signs during the first two months of Trump's return to the White House.
Private-sector hiring has slowed to its lowest level in seven months, with just 77,000 jobs added in February, according to ADP. Layoffs surged to 172,000 last month, the highest since the COVID-19 pandemic, as companies and federal agencies shed workers.
The Department of Government Efficiency, an organization led by billionaire Elon Musk, has driven mass government layoffs, with more than 62,000 federal employees losing jobs in February alone. DOGE's gutting of the federal government has sparked massive protests and boycotts against Tesla, the electric automaker that Musk leads as CEO.
The BLS is expected to release its March inflation data on Thursday, Apr. 10.
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