Inflation held at 2.4% in February as affordability woes persist
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Inflation remained at 2.4% for the year through February, with core inflation at 2.5%, while prices rose 0.3% in February.Forecasters had expected a steady reading,and the Bureau of Labor Statistics confirmed the CPI update. The report notes that higher prices continue to affect affordability and influence political dynamics around President Donald Trump.The Federal Reserve paused rate cuts and kept its target range at 3.50%-3.75%, citing a slowing labor market; in February the economy shed 92,000 jobs and the unemployment rate rose to 4.4%. A revision showed payroll employment for 2025 was about 1 million lower than previously thought.The piece also mentions industry pushback on a major housing bill restricting purchases by large investors, while Democrats and Republicans debate how to frame the economy ahead of elections.
Inflation held at 2.4% in February as affordability woes persist
Inflation held steady at 2.4% for the year ending in February as higher prices continue to plague President Donald Trump.
Forecasters had expected inflation to hold steady last month. 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 have the potential to imperil Republicans in the midterm elections.
Core inflation, a measure that strips out volatile food and energy prices, also held steady at 2.5% for the year ending in February.
In February alone, prices rose 0.3%.
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.
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