Despite fears over trade wars and tariffs, inflation was relatively stable during the first full month of the Trump administration in February.

According to the consumer price index, prices for goods and services increased by 0.2% during February, resulting in a 2.8% year-over-year increase in the CPI.

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The Bureau of Labor Statistics released the updated CPI on Wednesday. The CPI weighs the costs of goods based on their importance, with items such as food, shelter, and energy typically weighted more heavily.

February's inflation rate was lower than in January 2025, which recorded the largest month-over-month increase in the CPI since August 2023. Consumers paid 0.5% more for goods and services in January compared to the previous month.

Over the last decade, prices have generally increased at a rate of 3.2% per year. Over the last 20 years, consumer inflation has typically risen by 3% annually. The Federal Reserve, however, has aimed to keep annual inflation at approximately 2%.

The new data comes as President Donald Trump has implemented 25% tariffs on steel and aluminum imports into the U.S. It remains unclear what, if any, impact these tariffs will have on consumer prices.

Are wages keeping up with inflation?

Wages have slightly outpaced inflation, meaning the typical American has regained some of the buying power lost in 2021 and 2022. U.S. workers earned 4% more per hour in February compared to a year earlier. Workers also saw their weekly earnings increase by 3.4% in February compared to the previous year.