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Inflation cooled in February (The Wall Street Journal, subscription).

What’s going on: “Consumer prices were up 2.8% in February versus a year earlier, the Labor Department reported Wednesday, versus a January gain of 3%. Economists polled by The Wall Street Journal had expected a 2.9% gain.”

• So-called “core” consumer prices—costs excluding often-volatile food and energy and the measure economists watch more closely—increased 3.1%.

The backdrop: “Economists are struggling to keep up with the recent tariff news, but are pushing up their inflation estimates, nonetheless. Goldman Sachs economists last week raised their forecast for the Commerce Department’s core inflation gauge to 2.9% in the coming fourth quarter from a year earlier.”

• There is some concern on Wall Street about a possible recession.
• Today’s CPI report “largely predates President Trump’s recent tariff actions.” The U.S. imposed an additional 10% tariff on Chinese goods early last month, but many other tariffs have either been put on hold or did not take place in February.
• ​​​​​​​Food prices have also risen, adding to consumers’ concern about the economy.

The big picture: Today’s report shows “further signs of progress on underlying inflation, with the pace of price increases moderating after January’s strong release,” Kay Haigh, global co-head of fixed income and liquidity solutions at Goldman Sachs Asset Management, told CBS News.

• Despite the lower-than-anticipated inflation, the Federal Reserve will likely still hold off on rate cuts at its meeting next week, Haigh said.