US Consumer Price Index Rises 2.8% Year-Over-Year in February

On Wednesday, the US Bureau of Labor Statistics (BLS) reported that the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2% on a seasonally adjusted basis in February. This follows increases of 0.5% in January and 0.4% in December. Over the past 12 months, the all-items index has increased 2.8% before seasonal adjustment.

The shelter index rose 0.3% in February, contributing nearly half of the monthly increase in the all items index. This gain was partially offset by a 4.0% decline in airline fares and a 1.0% drop for gasoline. Despite lower gasoline prices, the energy index edged up 0.2% as electricity and natural gas costs increased. The food index also rose 0.2%, with food away from home up 0.4%, while food at home remained unchanged.

Excluding food and energy, the all-items index increased 0.2% in February, following a 0.4% rise in January. Notable increases were seen in medical care, used vehicles, household furnishings, recreation, apparel, and personal care. Airline fares and new vehicle prices were among the few major indexes that declined.

Over the past 12 months, the all-items index rose 2.8%, down from 3.0% in January. Excluding food and energy, the index increased 3.1%. The energy index declined 0.2% over the year, while the food index rose 2.6%.