February US CPI Softer Than Expected at a 2.8% Annual Inflation Rate

The Bureau of Labor Statistics reported that the Consumer Price Index increased 2.8% in February from year-ago levels, compared with 3.0% in January. Year-over-year core CPI (which excludes volatile food and energy costs) rose 3.1%, trailing the January rate of 3.3%.

The CPI rose 0.2% month over month in February after rising 0.5% in January. Core CPI also rose 0.2%, matching the January increase.

Economists forecast the CPI to rise 0.3% on a monthly basis in February, taking the annual inflation rate to 2.9%, according to FactSet’s consensus estimates. Economists expected that core inflation rose 0.3% on a monthly basis and 3.2% on an annual basis.

February CPI Report Key Stats

• CPI rose 0.2% for the month after rising 0.5% in January.
• Core CPI also rose 0.2% after rising 0.4% in January.
• CPI increased 2.8% year over year after increasing 3.0% the prior month.
• Core CPI rose 3.1% from year-ago levels after rising 3.3% in January.

Food prices increased 0.2% in February after rising 0.4% in January. Grocery prices remained unchanged, while restaurant prices increased 0.4%.

Energy prices were mixed after holding steady last month. Utility gas prices rose 2.5%, fuel oil prices increased 0.8%, gasoline prices fell 1.0%, and electricity prices increased 1.0%.

Shelter prices rose 0.3% in February after rising 0.4% in January.