[Breaking News] U.S. February Consumer Price Index Rises 0.2% Month-on-Month, Below Expectations

# U.S. Inflation Cools, Offering Positive Signs for Fed's Targets NEW YORK — The U.S. Consumer Price Index (CPI) registered a slower-than-expected rise, signaling a potential positive turn for the Federal Reserve's inflation targets. On March 12, the U.S. Department of Labor reported that February's CPI increased by 2.8% year-over-year, falling short of the market expectations of 2.9% and January’s rate of 3.0%. This marked a reversal in the four-month inflationary trend, bringing the Fed closer to its goal of maintaining around 2% inflation. Federal Reserve Chair Jerome Powell remarked at the ‘2025 U.S. Monetary Policy Forum’ hosted by the University of Chicago Booth School of Business on March 8, “The process of continually bringing inflation back to our target will not be smooth,” adding, “Uncertainty will persist moving forward.” Concerns are also being raised that President Donald Trump's trade policies could reignite price increases. Trump has been aggressively pursuing trade policies, including imposing new tariffs and considering hikes on countries such as China, Canada, and Mexico. Mark Hamrick, a senior economic analyst at Bankrate, told Business Insider, “The President’s tariff policies pose a risk of reigniting inflation,” and noted, “Given the progress in stabilizing prices in recent years, this would be a very unfortunate development.” The Federal Open Market Committee (FOMC) is set to meet next week to discuss potential adjustments to the benchmark interest rate. The new CPI data and recently released employment figures are expected to be key factors in their deliberations. While the U.S. unemployment rate has seen a slight uptick in recent years, it remained historically low in February. However, employment growth in February fell below market expectations, though the labor force participation rate for the core working-age group (ages 25-54) remained stable. According to the CME FedWatch Tool, the market perceives a 97% probability that the Fed will hold rates steady this month, suggesting that the Fed is likely to monitor economic conditions rather than moving towards rate cuts in the near term.