Core inflation in February hits 2.8%, higher than expected

    The core PCE price index measured at 2.8% for the past 12 months at the end of February. The core PCE price index is the Fed's preferred measure of inflation. Consumer spending also was slightly below projections, sitting at a growth of 0.4%, whereas projections were calling for 0.5%. The immediate cause for the aggravated inflation rate not going back down to the Fed's goal of 2% seems to be tariff related. The Fed's timeline for cutting interest rates seems to have been slowed down by this lingering inflation. The article makes a point that tariffs are normally considered, "...as one-off events that do not feed through to longer-lasting inflation pressures," but in this case the all encompassing nature of Trump's tariffs could possibly lead to an aggressive global trade war. That is to say, all of this uncertainty is being reflected in the numbers. 

https://www.cnbc.com/2025/03/28/pce-inflation-february-2025-.html