U.S. consumer prices increased less than expected in February, but the improvement is likely temporary against the backdrop of aggressive tariffs on imports that are expected to raise the costs of most goods in the months ahead.

US consumer price inflation data for February came in slightly below expectations across the board. However, while the Fed does not target this index, price pressures are still too strong to warrant a near-term Fed cut. The data does ease fears of resurgent inflation that resulted from a high January CPI reading.

February inflation measured by the Consumer Price Index Wednesday was 2.8% annually and was up a lower than expected 0.2% for the month, seasonally adjusted.