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American inflation was cooled last month, although the trade war threatens to lower prices

American inflation was cooled last month, although the trade war threatens to lower prices

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Inflation of the United States of Washington (AP) has slowed down last month for the first time since September and a measurement of underlying inflation fell to a hollow of four years, even if widespread prices threaten to send higher prices.

The consumer price index increased by 2.8% in February compared to a year ago, the Wednesday report of the Labor Department showed, down 3% in the previous month. Basic prices, which exclude the volatile food and energy categories, increased by 3.1% compared to the previous year, compared to 3.3% in January. The central figure has been the lowest since April 2021.

The decreases were greater than those that economists expected, according to a survey by the FALSET data provider. However, inflation remains above the target of federal reserves of 2%. And most economists expect inflation will remain high this year while Trumps prices come into play.

The report is encouraging news, although it does not tell us much about the direction of inflation, said Oren Klachkin, economist of financial markets nationally, in an email. With prices, it is possible to push the prices of higher goods … We consider the risks of inflation as inclined upwards.

The AP Washington correspondent, Sagar Meghani, reports a drop in inflation.

On a monthly basis, inflation is also much lower than that provided. Consumer prices increased by 0.2% in February compared to the previous month, down compared to a big leap of 0.5% in January. And basic prices only increased by 0.2%, below the 0.4% increase in January. Economists look at the basic prices because they are generally a better guide for future inflations.

A sharp drop in air prices, which dropped by 4% in February compared to the previous month, helped reduce overall inflation. Rental price increases have also slowed down and the costs of hotel and car insurance rooms increased much more slowly in February than the previous month. The price of new cars fell last month compared to January.

The prices of the grocery store were unchanged last month from January, bringing a certain relief to consumers struggling with a 25% increase in the prices of the grocery store of four years ago. The cost of eggs, however, jumped 10.4% in February compared to the previous month and is almost 60% more expensive than a year ago.

Aviary flu has forced farmers to massacre more than 160 million birds, including 30 million in January. The average egg prices reached $ 5.90 per national scale in February, a record level. The price was constantly less than $ 2 a dozen for decades before the disease strikes.

The impact of the impact prevails over pricing rates remains uncertain for the moment. The tasks have disrupted the financial markets and could strongly slow down the economy, and some analysts see the chances of a recession increase.

Trump on Wednesday increased American import taxes on all steel and aluminum imports to 25% each. Some companies that use steel already see their costs increase, and depending on the duration of their stay, they could increase the prices of cars, household appliances and electronics. The European Union responded in kind almost immediately to the tasks of steel and aluminum, announcing a commercial action of reprisals with new prices on American industrial and agricultural products.

The White House also imposed 25% rights on all imports of Canada and Mexico, with a rate of 10% for Canada oil. Most of these prices were suspended until early April.

However, Canada will announce reprisals prices which will be added to $ 21 billion in US dollars, according to a senior Canadian government official who spoke on condition of anonymity because they were not allowed to speak before the announcement.

Trump is also committed to imposing reciprocal prices on any country with American export tasks on April 2. Yale budget economists calculate that these tasks could increase the average price of the United States to its highest level since 1937 and cost the average cleaning up to $ 3,400.

This increased business owners.

This puts a lot of companies like ours in a difficult situation, said Ethan Frisch, co-PDG of the New York Spice Company Burlap & Barrel. Would have to transmit (the cost) to the consumer. We cannot afford to eat that cost us as a small business. And we certainly cannot transmit it to a farmer in the center of Mexico. So this will make the product more expensive, which will in turn slow down sales.

Performance expectations for 2025 have already been moderate by some of the largest American retailers.

Walmart’s financial director John David Rainey said last month that certain product categories will have price increases.

Last week, Target CEO, Brian Cornell, said that Product prices, including Mexican lawyers, could soon increase industry level and that other goods would follow. Best Buys CEO, Coririe Barry, said Shes expected suppliers at higher prices, China and Mexico being the main sources for its products.

Prices were a major subject during the recent annual toys because almost 80% of toys sold in the United States come from China. Price increases from 15% to 20% are expected on games, dolls, cars, said Greg Ahearn, president and chief executive officer of the Toy Association, said

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The screenwriters of the AP Josh Boak and Paul Wiseman in Washington, Anne Dinnocenzio in New York, and Lorne Cook and David Mchugh in Europe contributed to this report.

Sources

1/ https://Google.com/

2/ https://apnews.com/article/inflation-economy-tariffs-trump-883afba8a7199b3a92a617b68ab1a6a6

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