U.S. Inflation Eases Amid Trade Policy Uncertainty

Inflation in the U.S. showed signs of moderating in February, rising 2.8% from a year ago and 0.2% from the previous month, marking a decrease from January's figures. Core inflation, excluding volatile food and energy prices, also slowed to 3.1% year-over-year, a four-year low, though both measures remain above the Federal Reserve's 2% target. Economists were surprised by the larger-than-expected decline, but ongoing trade tensions and new tariffs on steel, aluminum, and imports from China, Canada, and Mexico are likely to exert upward pressure on prices in the coming months. Despite the easing, fears persist that inflation could rise again, partly due to President Trump's aggressive trade policies. The Federal Reserve is expected to keep interest rates steady for now, but the uncertainty of trade policy and its impact on inflation and growth keeps the economic outlook cautious. Consumers are particularly affected by the rising costs of staples such as eggs, while housing-related costs saw a slight slowdown.