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The inflation rate was 3.2% in February based on the consumer price index.That year-over-year increase was greater than the 3.1% increase in January.CPI also increased 0.4% month over month.
Consumer price index data released by the Bureau of Labor Statistics Tuesday showed inflation, by this measure, unexpectedly accelerated slightly in February.
After starting 2024 with an inflation rate of 3.1% in January, the year-over-year percent change in CPI was 3.2% in February. The forecast was 3.1%.
CPI increased 0.4% from the preceding month, higher than the previous month-over-month increase of 0.3%. That’s also the same as the expected increase of 0.4%.
Core CPI, which excludes volatile food and energy prices, increased 3.8% year over year in February after a 3.9% increase in January. The forecast for February’s year-over-year increase was 3.7%.
Core CPI only increased 0.4% from January to February, or matching the previous surge of 0.4%. The forecast for this increase was 0.3%.
The food index slowed from a year-over-year increase of 2.6% in January to an increase of just 2.2% in February. The food index didn’t see a month-over-month change after a 0.4% increase in January. While the food at home index also didn’t see a change from January to February, the food away from home index ticked up 0.1% after increasing by 0.5%.
The energy index saw another year-over-year decline, a decline of 1.9% in February following a decline of 4.6%. This index rose 2.3% month over month after several months of declines. The index for gas saw a 3.8% increase in February from the preceding month after a decline of 3.3% previously. This index also saw a 3.9% decline for the 12 months ending February.
The shelter index cooled from a year-over-year increase of 6.0% in January to 5.7% in February. It’s still far beyond the rate from before the pandemic.
“The shelter index increased 0.4 percent in February and was the largest factor in the monthly increase in the index for all items less food and energy,” Tuesday’s news release from BLS said. “The index for rent rose 0.5 percent over the month, while the index for owners’ equivalent rent increased 0.4 percent.”
On Friday, the Bureau of Labor Statistics released data about the job market in February. The US unemployment rate increased to 3.9%, or the highest unemployment rate in two years. Still, the rate is relatively low, and Indeed’s Nick Bunker told Business Insider it could be the same case as last year, “where it rose but then came back down.”
Friday’s data release also showed average hourly earnings increased from $33.15 an hour in February 2023 to $34.57 an hour this past February. That 4.3% rise is just below the 4.4% rise in January and still low compared to the large year-over-year increases seen in 2022.
This is a developing story. Please check back for updates.
