WASHINGTON (AP) — An inflation gauge closely watched by the Federal Reserve remained high last month even before the impact of most tariffs has been felt. Americans’ spending rebounded in February after a steep fall last month and incomes increased.
Friday’s report from the Commerce Department showed that consumer prices increased 2.5% in February from a year earlier, matching January’s annual pace. Excluding the volatile food and energy categories, prices rose 2.8% compared with a year ago, higher than January’s figure of 2.7%.
Inflation remains a top economic concern for most Americans, even as it has fallen sharply from its 2022 peak. Donald Trump rose dissatisfaction with higher prices to the presidency and promised to quickly bring down inflation, but the yearly rate is higher now than in September, when it briefly touched 2.1%.
Trump has slapped 20% tariffs on all Chinese imports, 25% import taxes on steel and aluminum, and on Wednesday said he would hit imported cars with another 25% duty. Most economists, and the Federal Reserve, now expect inflation to tick higher this year as a result of the tariffs. Fed Chair Jerome Powell last week said elevated inflation from the tariffs could be temporary. But he also added the outlook was unusually uncertain given the swift changes in policy from the White House.
Consumer and business confidence in the economy has fallen sharply since Trump began rolling out tariffs, and a measure of Americans’ outlook for the future of the economy dropped to a 12-year low on Tuesday. Many polls find that most of the public sees the economy as fair or poor. A survey last month by the Pew Research Center found that 63% of Americans still see inflation as a “very big problem.”
Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
US inflation remained elevated last month as consumer spending recovered WHEC.com.
Read More Details
Finally We wish PressBee provided you with enough information of ( US inflation remained elevated last month as consumer spending recovered )
Also on site :
- A Gaza-bound aid boat carrying Greta Thunberg and other activists has been diverted to Israel
- 'Hamilton’ Original Cast Reunites at 2025 Tony Awards & Fans Are Saying the Same Thing
- AP PHOTOS: Portugal beats Spain to win the Nations League