Consumer Price Index Increases 0.8% in February 2022 – Up Year-Over-Year 7.9%

The U.S. Bureau of Labor Statistics (BLS) reported on Thursday (3-10-22), that the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.8% in February on a seasonally adjusted annual basis. This followed a 0.6% increase in January, 0.5% increase in December, a 0.8% in November and a 0.9% in October. Over the past 12-months, the all-item index has increased 7.9% before seasonal adjustment.

The food index rose 1.0% in February, following a 0.9% increase in January, a 0.5% increase in December, and larger increases in each of the three previous months. The index for food at home increased to 1.4% in February, following a 1% increase in January and a 0.4% increase in December. Over the past 12-months the food at home index rose 8.6%, which is the large increase since the 12-month period ending in April 1981. The food away from home index rose 0.4% in February after increasing 0.7% in January. The index for food away from home rose 6.8% year-over-year, the largest 12-month increase since December 1981.

The energy index rose 3.5% in February, following a 0.9% increase in January. The gasoline index rose sharply in February, increasing 6.6% after falling -0.8% in January. (Before seasonal adjustment, gasoline prices rose 5.4% in February.) The index for natural gas increased in February, rising 1.5% after declining -0.5% in January. In contrast, the electricity index, which rose sharply in January, declined -1.1% in February. Year-over-year the energy index has increased 25.6% , with all major energy component indexes increasing. The index for gasoline rose 38.0 percent over the last year and the index for natural gas rose 23.8%. The index for electricity rose 9.0% for the 12 months ending February.

The index for all items less food and energy rose 0.5% in February, following a 0.6% increase the prior month. The shelter index was by far the biggest factor in the increase, with a broad set of indexes also contributing, including those for recreation, household furnishings and operations, motor vehicle insurance, personal care, and airline fares.

The all-items index rose 7.9% for the 12 months ending February. The 12-month increase has been steadily rising and is now the largest since the period ending January 1982. The all-items less food and energy index rose 6.4%, which is the largest 12-month change since the period ending August 1982. The energy index rose 25.6% over the last year, and the food index increased 7.9%, the largest 12-month increase since the period ending July 1981.