Prices consumers pay for a broad range of goods and services rose in line with expectations for February, offering a final look at inflation pressures before an oil shock tied to the Iran war rattled the outlook.
The consumer price index increased a seasonally adjusted 0.3% for the month, putting the 12-month inflation rate at 2.4%, according to Bureau of Labor Statistics data released Wednesday. Both numbers matched the Dow Jones consensus forecast.
Stripping out volatile food and energy prices, core CPI posted a 0.2% monthly reading and 2.5% annual rate, compared to forecasts for 0.2% and 2.5%, also in line with the estimates.
The annual rates were unchanged from January, indicating that inflation was holding above the Federal Reserve’s 2% target but not getting worse.
While the report showed inflation broadly stable, prices rose modestly for shelter and services while several goods categories, including used vehicles and auto insurance, saw declines.
Shelter, which is the single-biggest component of CPI, posted a 0.2% increase, putting the annual rate at 3%. Within the category, rent rose just 0.1%, the smallest monthly increase since January 2021.
Apparel prices, which are sensitive to tariff pressures, saw a 1.3% monthly gain. New vehicle prices were steady and up just 0.5% from a year ago while energy rose 0.6% and also saw a 0.5% annual increase.
Food prices accelerated 0.4% for the month and were up 3.1% from a year ago.
However, the data predates the recent surge in oil prices tied to escalating tensions involving Iran, meaning any impact from higher energy costs will likely show up in the months ahead.
Markets reacted little to the report, with stock market futures mixed and Treasury yields higher.
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