Consumer prices rose 0.3% in February over the previous month, according to data released by the Bureau of Labor Statistics on Friday morning, matching expectations and rising slightly higher than the previous month’s 0.2% increase. The inflation measure rose 2.4% year over year, also matching expectations and January’s year-on-year reading.
The “core” Consumer Price Index, which excludes the volatile food and energy categories, rose by 0.2% from the previous month and 2.5% over the previous year. Both readings were in line with economists’ expectations.
The month-over month reading for core inflation cooled slightly from January’s 0.3% increase, while the year-on-year reading remained unchanged from the previous month.
Fuel oil and utility gas prices rose 11.1% and 3.1%, respectively, from the previous month, driven in part by a cold-weather snap that blanketed the US with freezing temperatures, prompting Americans to crank up their heat.
As Yahoo Finance’s Emma Ockerman noted, the report covers the period before the war with Iran broke out, which has raised gas prices and fueled concerns of higher utility bills.
“Perhaps more important than the [February] data is the evolving risk space for inflation,” Bank of America’s Stephen Juneau said in a research report last week, noting that a longer conflict “would put upward pressure on headline, core inflation and inflation expectations in the months ahead.”
Gasoline prices rose 0.8% month over month in February, but that figure could jump in future reports. Gas pump prices averaged $3.578 per gallon nationally, up from $2.937 one month ago.
