Inflation in the United States increased by 2.8% over the 12 months ending in February, according to a report from the U.S. Bureau of Labor Statistics released on Wednesday. This represents a slight deceleration from the previous month's annual rate of 3%.
The February Consumer Price Index (CPI) data mostly precedes President Trump's recent tariff actions, which could influence future inflation figures. The CPI report is not expected to impact the Federal Reserve's upcoming decision on whether to maintain current interest rates.
On a monthly basis, the all-items index of the CPI rose by 0.2% in February, following a 0.5% increase in January. Shelter costs saw an increase of 0.3%, contributing significantly to the overall rise. In contrast, airline fares fell by 4%, and gasoline prices dropped by 1%. However, higher electricity and natural gas prices led to a 0.2% increase in the overall energy index.
Excluding food and energy prices, which are more volatile, the core index rose by 0.2% in February after a rise of 0.4% in January. There were price increases for medical care, used cars and trucks, home furnishings, recreation, apparel, and personal care during this period.
The food at home index remained unchanged for February as declines in four out of six major grocery store categories were balanced by rises in two others. Notably, egg prices surged by 10.4%, driving up the meats, poultry, fish, and eggs index by 1.6%. Meanwhile, cereals and bakery products saw a modest increase of 0.4%.
Over the past year, meats, poultry, fish, and eggs have experienced a price hike of 7.7%, with egg prices alone soaring by 58.8%. This sharp rise is attributed to shortages caused by bird flu outbreaks affecting poultry farms.
Annually excluding food and energy prices showed that the core index increased by 3.1% for the year ending in February; meanwhile, energy decreased slightly by 0.2%, while food rose by 2.6%.
Despite generally positive news regarding inflation trends, market reactions were mixed on Wednesday due to new tariffs implemented under President Trump’s administration on steel and aluminum imports from abroad taking effect concurrently with retaliatory tariffs from Canada and the European Union on U.S exports.
