Prices ticked higher in February, but there’s good news at the grocery store
Gas prices have climbed in recent months due in part to higher demand and a switch to a more expensive summer blend.
By Alicia Wallace, CNN
New York (CNN) — Higher prices at the gas pump pushed up inflation more than expected in February, according to the latest Consumer Price Index from the Bureau of Labor Statistics.
However, inflation did slow in other key areas like food and housing, fueling a touch of positive news for the Federal Reserve and consumers alike.
Overall, the closely watched inflation gauge showed that prices rose by 3.2% for the 12 months ended in February, the BLS said Tuesday. That’s up slightly from January’s annual reading of 3.1%, and higher than economists’ expectations.
On a monthly basis, CPI rose by 0.4% in February, the fastest pace since September of last year.
Stocks rose Tuesday morning as investors cheered the cooldown in some categories of inflation. The Dow rose 97 points, or 0.3%. The S&P 500 gained 0.5% and the Nasdaq Composite added 0.6%, both on pace to snap a two-day losing streak.
Pushing inflation higher in February was a sharp climb in gas prices and the continued steady rise in shelter costs. Combined, those two categories were responsible for 60% of the monthly increase, the BLS said.
That monthly pace was right in line with the 0.4% increase that economists were expecting, according to FactSet consensus estimates.
Excluding gas and food prices, categories that tend to be more volatile, “core” inflation rose 0.4% from the month before, bringing its annual rate to 3.8%, a slowdown from 3.9% in January.
Food prices were flat
Outside of gasoline (up 3.8%) and related fuel and energy costs, some of the categories that saw the biggest price spikes included girls’ apparel (up 6.8%); eggs (up 5.8%); and airline fares (up 3.6%). Prices dropped for dairy products and hospital services (both down 0.6%); and fruits and vegetables (down 0.2%).
Still, there was some good news for Americans: For the first time since April 2023, overall food prices did not rise. Grocery prices held flat, while “food away from home” (restaurants) ticked up last month by just 0.1%.
On an annual basis, overall food price inflation slowed to 2.2%, the lowest rate since May 2021. It is now edging even closer to pre-pandemic norms.
Shelter inflation eased to 0.4% from the month before, after spiking by 0.6% in January. Annually, shelter prices are up 5.7%.
This is a developing story and will be updated.
The-CNN-Wire
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