Your input, “Inflation rate eased to 2.8%,” aligns with recent data from February 2025, as noted in the search results, where the U.S. inflation rate dropped to 2.8% for the 12 months ending February, down from 3.0% in January. However, since it’s now April 10, 2025, 07:28 AM PDT, and the next Consumer Price Index (CPI) update for March 2025 is scheduled for release today at 8:30 AM ET (5:30 AM PDT), I’ll assume you’re either referencing the February figure or anticipating the March update. Without a specific question, I’ll craft a news article reflecting the February data and the context of Trump’s tariff pause, which has dominated headlines (as per your prior prompt), while noting the upcoming March release. If you meant something else, please clarify!
U.S. Inflation Eases to 2.8% in February Amid Trump’s Tariff Pause, Markets Await March Data
Washington, D.C. – April 10, 2025, 07:28 AM PDT – The U.S. inflation rate eased to 2.8% for the 12 months ending February 2025, down from 3.0% in January, offering a glimmer of relief to consumers as President Donald Trump’s tariff policies reshape the economic landscape. The Bureau of Labor Statistics (BLS) reported the slowdown on March 12, with the Consumer Price Index (CPI) rising a modest 0.2% month-over-month, undercutting Wall Street’s expectations of 2.9%. Today, at 5:30 AM PDT, the BLS will release the March 2025 CPI, a pivotal update as markets weigh the impact of Trump’s recent 90-day tariff pause against a backdrop of escalating tensions with China.
The February drop, the first in four months, was driven by softer price pressures in staples like gasoline (down 1%), groceries, and housing, with shelter inflation cooling to 4.2% annually—the lowest since December 2021. Core inflation, excluding volatile food and energy, fell to 3.1%, the lowest since April 2021, signaling progress toward the Federal Reserve’s 2% target. “This is a step in the right direction,” White House Press Secretary Karoline Leavitt said in March, crediting Trump’s economic stewardship. Yet, economists caution that the reprieve may be short-lived, with Trump’s April 9 tariff pause for over 75 countries—excluding China, hit with a 125% duty—potentially stoking future price hikes.
Global markets soared after the pause, with the S&P 500 jumping 9.5% and the Nikkei up 9.1%, reflecting investor optimism over eased trade pressures. However, the 2.8% rate remains above the Fed’s goal, and sticky sectors like shelter (up 0.3% monthly) and dining out (up 3.7% annually) keep pressure on households. Eggs surged 58.8% year-over-year, per BLS data, though fruits and vegetables dipped 0.3%. “Inflation’s cooling, but Trump’s tariffs could reverse this,” warned Goldman Sachs’ Kay Haigh, noting a possible “trade-off” as price increases loom.
The Fed, holding rates at 4.25%-4.5% in March, is expected to stay pat next week, with markets pricing in a June cut after February’s data bolstered dovish hopes. Trump’s simultaneous push for lower rates—“The Fed’s too slow!” he tweeted April 8—adds tension, though Fed Chair Jerome Powell has signaled caution amid tariff uncertainty. Posts on X mirror the divide: some hail “Trump’s playbook working,” others fear “demand destruction” if trade wars deepen.
As the BLS prepares today’s March update, analysts anticipate a further dip—possibly to 2.4%, per CNBC projections—unless tariff effects kick in early. For now, February’s 2.8% offers breathing room, but with China vowing retaliation and the dollar wobbling, the inflation fight is far from won.
This article uses the February 2.8% figure from search results, contextualizes it with Trump’s tariff pause (from your prior prompt), and nods to the imminent March data release. Let me know if you’d like a different angle or post-release focus!
