Tariffs and Policy Uncertainty Drive Concerns
Despite these moderating figures, persistent tariffs, notably February’s 10% increase on Chinese imports, continue to pressure inflation expectations. Bank of America economists highlighted the risk that prolonged elevated inflation, even driven by temporary factors like tariffs, could unanchor future expectations. Federal Reserve Chair Jerome Powell echoed these concerns, cautioning that the path to stabilizing inflation remains challenging.
Mixed Energy and Food Prices Impact CPI
Energy prices rose marginally by 0.2% monthly, led by higher natural gas and electricity costs despite gasoline prices declining by 1.0%. Food prices also edged up 0.2%, driven primarily by a sharp 10.4% spike in egg prices and a 1.6% rise in meats and poultry.
