Morningstar

February CPI Report Shows Inflation Was Steady at 2.4% Before Iran War

Core CPI came in at 2.5%.

Ilustración collage en la que aparece la Reserva Federal bajo una lupa con elementos gráficos de fondo.

The Bureau of Labor Statistics reported that the Consumer Price Index increased 2.4% in February from year-ago levels, the same as in January.

Year-over-year core CPI (which excludes volatile food and energy costs) rose 2.5%, also matching January’s rate. Overall inflation rose 0.3% month over month after rising 0.2% in January. Core inflation rose 0.2%, matching January.

Economists had expected CPI to rise 0.3% on a monthly basis and 2.5% year over year in February, according to the consensus estimates from FactSet. Core CPI was expected to come in up 0.3% on a monthly basis and up 2.5% year over year.

February CPI Inflation Report Highlights

  • CPI rose 0.3% for the month after rising 0.2% in January.
  • Core CPI rose 0.2% after rising 0.3% in January.
  • CPI increased 2.4% year over year after increasing 2.4% in January.
  • Core CPI rose 2.5% from year-ago levels after remaining unchanged in January.

Food prices increased 0.4% in February after increasing 0.2% in January. Grocery prices rose 0.4%, while restaurant prices increased 0.3%. Overall energy prices increased 0.6% after falling 1.5% last month, while utility gas prices rose 3.1%, fuel oil prices increased 11.1%, gasoline prices rose 0.8%, and electricity prices decreased 0.7%. Shelter prices rose 0.2% in February after rising 0.2% in January.

What Is the CPI?

The Consumer Price Index is a mainstream measure of inflation that tracks changes in consumer prices for a wide variety of goods and services including food, housing, healthcare, and energy.

The CPI report is widely followed by investors, but it isn’t the only way to keep track of inflation. When it comes to the Federal Reserve’s decisions on interest rates, the focus is generally on the Personal Consumption Expenditures Price Index. The Fed targets a 2% inflation rate, but that is based on the PCE inflation index, not the CPI. However, the CPI generally makes front-page news because it is released earlier than the PCE and contains much of the same information. Both reports are released on a monthly cadence.

This article was generated with the help of automation and reviewed by Morningstar editors. Learn more about Morningstar’s use of automation.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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