TAMPA — The Consumer Price Index measures price changes across commonly purchased goods and services.
The report, which included February's numbers, was just released on Tuesday. It showed a cooling of inflation to 2.8% compared to 3% the month prior.
“The inflation numbers actually came back pretty good this month… This probably means that the Federal Reserve is going to hold interest rates steady next month,” said Thomas Stockwell, assistant professor of economics at The University of Tampa.
He and other experts said inflation eased a little more than they expected.
“It’s definitely good news… That is lower than I expected and it’s lower than a lot of other experts expected," said Michael Snipes, instructor of economics at the University of South Florida.
That decrease was fueled by steadying grocery prices and lower gas prices.
However, many economists remain cautious and believe we’ll continue to see things ebb and flow, as is normal in the transition period with a new president.
“It’s kind of a wait and see thing,” said Stockwell.
Experts expect to see inflation go up again, as early as in next month’s CPI report, with President Donald Trump’s promise of more tariffs and the potential for trade wars.
“There’s still just so much policy uncertainty unfortunately that it’s really hard to gauge exactly what’s going to happen. So what’s going to happen with the tariffs? Are they going to remain permanent? Are they going to go up?” said Snipes.
Stockwell thinks that uncertainty surrounding tariffs will impact the markets.
“One thing that markets hate is uncertainty… And uncertainty is bad for markets, it’s bad for growth, it’s just bad for the economy in general,” said Stockwell.
Many experts predict tariffs will raise the costs of goods in the months ahead.
“You will expect to see higher prices in the future. So even with the good inflation numbers today, inflation is still high. Prices of goods and services are still high. It’s not like you know consumers are getting a huge bout of relief just because the inflation numbers came in low. The inflation means prices are still going up so if you couldn’t afford things last month, you’re still not going to be able to afford things this month. Tariffs are just going to add to that inflationary pressure,” said Stockwell.
“It’s still really too early to kind of get any kind of long-term predictions as to what exactly this might mean,” said Snipes.
The Trump Administration has said any inflation increase caused by the tariffs would be temporary.
Economists are watching to see what happens next.
The next CPI report comes out in April.
While current owner Stu Sternberg hasn't said he's ready to sell the Tampa Bay Rays, two groups have emerged as potential buyers.
