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. Stripping out volatile food and energy prices, the core CPI posted a 0.2% monthly reading and 2.5% annual rate.
Shelter, which is the single-biggest component of the 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.
“CPI inflation for February was along expectations but this is the calm before the storm that will show up due to surging gasoline prices in March,” said Sonu Varghese, chief macro strategist for the Carson Group. “Still, this report does show that the Fed has an inflation problem even if you set aside the energy shock. Tariff-impacts are still hitting core goods inflation, while services inflation outside housing remains hot.”