US consumer price inflation decelerated in February

According to Reuters, US consumer price growth was moderate last month. But this trend could be temporal, since the data by the US Department of Labor does not fully reflect the impact of import tariffs imposed by Donald Trump. The current US administration’s trade policy caused an increase in inflation expectation and forced economists to upgrade their forecasts of price growth. 

The US Bureau of Labor Statistics reported the consumer price index (CPI) increased 0.2% in February, which is the smallest gain since October last year. Most of the rise was due to a 0.3% hike in the cost of shelter, including motel and hotel rooms.

US core CPI, which excludes the cost of energy and food, also rose by 0.2%, according to the Bureau’s data. 

Economists estimate that the core personal consumer expenditures price index rose 0.3% in February for the second consecutive month, Reuters said. Additionally, due to the continued imposition of import tariffs in the US, the country’s core inflation is expected to accelerate to 2.7% year-on-year in February. Goldman Sachs forecasts it to grow to about 3% by December.