Consumer Price Index (CPI) Posts Modest Gains, Meeting Forecast

The Consumer Price Index (CPI) for All Urban Consumers (CPI-U) gained 0.2% in February on a seasonally adjusted basis after a 0.5% gain in January. The U.S. Bureau of Labor Statistics said over the last 12 months, the all items index rose 2.2% before seasonal adjustment.

The indexes for shelter, apparel, and motor vehicle insurance all increased and contributed to the 1-month seasonally adjusted increase in the all items index, while the food index was unchanged in February. A decline in the index for food at home offset an increase in the food away from home index.

The energy index increased slightly, though the subcomponent indexes were mixed.

The index for all items less food and energy — also known as the so-called core CPI — gained 0.2% in February after a 0.3% rise in January. Along with shelter, apparel, and motor vehicle insurance, the indexes for household furnishings and operations, education, personal care, and airline fares all increased in February.

In contrast, the indexes for communication, new vehicles, medical care, and used cars and trucks all fell for the month.

The all items index rose 2.2% for the 12 months ending February, a slightly larger increase than the 2.1% rise for the 12 months ending January. The index for all items less food and energy rose 1.8% over the past year, while the energy index rose 7.7% and the food index gained 1.45.