The Consumer Price Index (CPI) increased 0.4 percent in February after rising 0.3 percent in January. Over the last 12 months, the “all items” index increased 3.2 percent before seasonal adjustment. The Federal Reserve has a targeted annual inflation rate of two percent.
The index for shelter rose in February as did the index for gasoline. Combined, these two indexes contributed over sixty percent of the monthly increase in the index for all items. The energy index rose 2.3 percent over the month as all of its component indexes increased.
The food index and the food-at-home index remained unchanged in February, while the food-away-from-home index rose 0.1 percent over the month.
The index for all items less food and energy rose 0.4 percent in February, as it did in January. Indexes that increased in February include shelter, airline fares, motor vehicle insurance, apparel, and recreation. The index for personal care and the index for household furnishings and operations decreased over the month. The all-items index rose 3.2 percent for the 12 months ending February, a larger increase than the 3.1 percent increase for the 12 months ending January. The all items less food and energy index rose 3.8 percent over the last 12 months. The energy index decreased by 1.9 percent for the 12 months ending February, while the food index increased by 2.2 percent over the last year.
The food index and the food at home index remained unchanged in February, rising 0.4 percent in January. Three of the six major grocery store food group indexes decreased over the month. The meats, poultry, fish, and eggs index also increased over the month, rising 0.1 percent. In particular, chicken decreased by 0.4 percent in the year and 1.3 percent from January to February.
The full report for March can be found here.
