Inflation held steady at 2.4% for the year ending in February as higher prices continue to plague President Donald Trump.
The Bureau of Labor Statistics reported the update to the consumer price index on Wednesday.
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The report that inflation is not falling is a blow to the White House. Trump has seen his economic approval ratings fall dramatically since he entered office, in large part because of voter discontent with affordability issues. The higher inflation prints could imperil Republicans in the midterm elections.
Core inflation, a measure that strips out volatile food and energy prices, was also unchanged in the month, at 2.5% for the year ending in February.
In February alone, prices rose 0.3%.
“The good news is that the CPI report was very much in line with expectations,” said Art Hogan, chief market strategist at B. Riley Wealth. “Higher prices for food and energy, coupled with ongoing tariff pass-throughs, drove up the headline figure, while softer vehicle prices and cooling shelter inflation offset some of those impacts.”
Still, Hogan said, March’s inflation report might be hotter due to price increases stemming from the war with Iran.
The latest CPI numbers don’t reflect the increase in gasoline prices brought on by the war with Iran. Gas prices have lurched up nearly 22% in the past month alone, according to AAA.
But there has been some price relief on key food items.
For instance, in the past year, the price of butter has fallen 7.6%. Egg prices, which were high last January thanks to an outbreak of the avian flu, are down more than 42%. And cheese prices have fallen 1.1% since this time last year. Some fruit and vegetable prices, such as those for potatoes, have also posted declines.
Still, some items in the CPI bundle are more expensive than a year ago.
Ground beef prices increased by more than 15%. Uncooked beef roasts are up 12.4%, and steaks cost 16.3% more.
Coffee prices have also ballooned 18.4% over the past year.
Electricity prices have been difficult for households as demand has soared on the grid. Electricity prices have gone up 4.8% in the past year.
This latest inflation report comes after the Federal Reserve voted to hold interest rates steady in January, pausing after cutting interest rates in the previous three meetings.
While the Fed continues to monitor slowdowns in the labor market, it remains attentive to the fact that inflation is still running above its 2% target. The pause comes despite pressure from the White House for the central bank to cut rates.
The Fed’s next meeting is set for next week, and it will make a decision on whether to hold its rate target at a range of 3.50% to 3.75%.
A major factor in officials’ thinking is the recent signs that job growth has significantly slowed.
The economy shed 92,000 jobs in February, and the unemployment rate edged up to 4.4%, the Bureau of Labor Statistics said last Friday.
And a revision to the past year’s data showed that payroll employment was 1 million lower at the end of 2025 than previously thought. Average monthly payroll growth for 2025 was revised down from roughly 50,000 to 15,000.
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Trump and Republicans have been working to highlight the positive spots in the economy, like, until last month, net positive job growth and unexpectedly hotter economic growth. Despite that, voters continue to report dissatisfaction with prices and affordability.
Democrats are trying to seize on economic discontent in order to gain back control of one or both chambers of Congress in the November midterm election. If they are able to win, it could hamstring the administration during the second half of Trump’s second term.
