Inflation rose 2.8% for the 12 months that ended in February, the U.S. Bureau of Labor Statistics reported Wednesday.
The news from the February Consumer Price Index report means inflation has decelerated slightly from the 3% annual rate recorded for the 12-month period that ended in January.
The latest CPI data largely predates President Trump’s recent actions on tariffs, which could impact future inflation reports. The CPI report is viewed as unlikely to affect the Federal Reserve’s decision when it meets next week to decide whether to hold interest rates steady.
Viewed on a monthly basis, the CPI’s all-items index increased 0.2% in February, after rising 0.5% in January. Shelter costs rose 0.3% for the month, accounting for nearly half of the all-items increase. Airline fares declined 4% and the cost of gasoline was down 1%. However, the overall energy index was up 0.2% because of higher electricity and natural gas prices.
The core index, which excludes more volatile food and energy prices, was up 0.2% for the month of February, following a 0.4% rise in January. Prices increased over the month for medical care, used cars and trucks, home furnishings, recreation, apparel and personal care. Airline fares and new vehicles were among the few indexes that increased for the month.
The food at home index was unchanged over the month as declines in four of the six major grocery store food group indexes were offset by increases in the remaining two. Driven primarily by a 10.4% increase in the index for eggs, the index for meats, poultry, fish, and eggs rose 1.6% percent for the month of February. The index for cereals and bakery products rose 0.4% in February, after falling 0.4% in January.
Over the past 12 months the index for meats, poultry, fish, and eggs has risen 7.7%. Egg prices have increased 58.8%, primarily because of the bird flu virus that has forced farmers to cull their flocks, causing egg shortages and higher prices.
Viewed on annual basis, the core index that excludes more volatile food and energy prices, rose 3.1% for the 12-month period ending in February. The energy index decreased 0.2% for the same 12-month period and the food index increased 2.6%.
Despite the largely positive inflation report, the stock market reaction was mixed on Wednesday. The Trump administration’s new 25% tariffs on all steel and aluminum imports took effect Wednesday and Canada and the European Union retaliated with tariffs on U.S. products exported abroad.
