Inflation cools more than expected for Trump’s first full month as president

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Simone Del Rosario Business Correspondent

By Simone Del Rosario (Business Correspondent), Emma Stoltzfus (Video Editor), Brent Jabbour (Senior Producer)

Inflation came in cooler than expected in February at 0.2% for the month and 2.8% for the year.
It’s the first time since September 2024 the annual inflation rate has declined, according to data from the Bureau of Labor Statistics.
Egg prices continue to experience double-digit increases each month, yet overall grocery prices did not rise in February.

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Inflation cooled more than expected during President Donald Trump’s first full month in office. In February, consumer prices rose 0.2% for the month after rising 0.5% in January, according to the latest data from the Bureau of Labor Statistics.

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Over the past 12 months, consumer prices increased 2.8% after a hotter-than-expected 3% rise in January. The softer inflation print is a welcome change on the nation’s path toward 2% inflation.

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The annual inflation rate had increased four months in a row before February.

Both February’s monthly and annual inflation numbers beat expectations of 0.3% and 2.9%, respectively.

Grocery prices unchanged in February despite egg prices

After rising 0.5% in January, grocery prices did not rise in February, and the annual inflation rate was 1.9%.

Although egg prices continue to rise – increasing by 10.4% in February – price drops in four of the six main grocery store food categories counteract the increases in eggs and beef, according to Labor Department data.

Over the past 12 months, egg prices have gone up 58.8%, driven primarily by the bird flu.

Airline fares fall as airlines cut growth forecasts

The price of airline tickets dropped 4% in February after rising 1.2% in January. The decrease helped offset rises in other categories, like shelter.

This week, several major airlines cut growth forecasts for the first quarter 2025, sending airline and other travel stocks tumbling. Delta Air Lines cited the economic uncertainty as the reason for slashing its revenue forecasts in half.

American Airlines said its own revenue environment is weaker than initially expected due to the deadly collision between a Black Hawk helicopter and American Airlines Flight 5342 in January and “softness in the domestic leisure segment.”

Energy prices add to the dip

While the energy index increased 0.2% in February, prices are still down 0.2% on the year.

Gas prices declined 1% in February, leading to a 3.1% drop over the past 12 months. Fuel oil is down 5.1% over that time.

February’s inflation data: A bright spot for Trump’s economic agenda

Markets have been reeling over Trump’s tariff actions and consumer confidence fell dramatically in February.

But the latest inflation numbers boost the president on the issue he has said he won the election over: lowering costs for Americans.

Tags: Bureau of Labor Statistics, Consumer Price Index, egg prices, egg shortage, groceries, Tariffs, Inflation, Donald Trump, U.S. Economy, Economy, Energy, Airlines, Gas prices, Eggs

[Simone Del Rosario]

Inflation cooled more than expected during President Donald Trump’s first full month in office.

In February, consumer prices rose 0.2% for the month after rising 0.5% in January. That’s according to the latest data from the Bureau of Labor Statistics out Wednesday.

Over the past 12 months, consumer prices increased 2.8% after a hotter-than-expected 3% rise in January. The softer inflation print is a welcome change for the nation’s path toward 2% inflation. The annual inflation rate had increased four months in a row before February.

Both February’s monthly and annual inflation numbers beat expectations of 0.3% and 2.9%, respectively.

After taking a bit of a beating this past week, the stock market rose to open the trading day Wednesday on the news of cooler inflation.

Markets have been reeling over President Donald Trump’s tariff actions and consumer confidence fell dramatically in February. But the latest inflation numbers boost the president on the issue he says he won the election over: lowering costs for Americans.

After rising 0.5% the month of January, grocery prices did not rise in February and show an annual inflation rate of 1.9%. The price of eggs continues to climb – it rose 10.4% in February. But price declines in four of the six major grocery store food groups offset increases by eggs and beef. Over the past 12 months, egg prices have gone up 58.8%, driven primarily by the bird flu. But good news could be coming in March. The Agriculture Department shows prices declining the first week of the month.

Speaking of dropping prices, the price of flying got cheaper in February. Airline tickets dropped 4% after rising 1.2% in January. The decrease helped offset rises in other categories, like shelter.

This week, several major airlines cut growth forecasts for the first quarter of 2025, sending airline and other travel stocks tumbling. Delta Air Lines cited the economic uncertainty as the reason for slashing its revenue forecasts in half.

American Airlines said its own revenue environment is weaker than initially expected due to the deadly collision between a Black Hawk helicopter and American Airlines Flight 5342 in January. And also “softness in the domestic leisure segment.”

Meanwhile, energy prices continue a cooling trend. While the energy index increased 0.2% in February, prices are still down 0.2% on the year. During February, gas prices declined 1%, leading to a 3.1% drop over the past 12 months. Fuel oil is down 5.1% over that time.