The Consumer Price Index (CPI) rose 0.4% in February, after increasing by 0.5% in January, according to the U.S. Bureau of Labor Statistics. The all-items index increased 6.0% for the 12 months ending February, the lowest 12-month increase since the period ending September 2021.
While a positive sign, Tuesday’s CPI report showed that inflationary pressures remain stubborn and are likely to continue to keep prices elevated. Rising costs will also keep pressure on the Federal Reserve to raise its benchmark interest rate at next week’s meeting in an attempt to drive inflation down to its target 2% inflation rate. However, recent bank failures may force the Fed to veer from its planned actions. Click here to read more.
The index for shelter contributed to 70% of the indexes increase, with food, recreation, and household furnishings also contributing. Food became more expensive, while energy prices, used vehicles, and medical care saw price decreases. However, eggs dropped 6.7% while meats, poultry, and fish decreased slightly, the first decline since December 2021.