Higher prices at the gas pump pushed up inflation more than expected in February, according to Consumer Price Index data from the Bureau of Labor Statistics released yesterday.
However, inflation did slow in other key areas like food and housing, fueling a touch of positive news for consumers, and the Federal Reserve.
Overall, the closely watched inflation gauge showed that prices rose by 3.2% for the 12 months ended in February. That’s up slightly from January’s annual reading of 3.1%, and higher than predicted by economists.
On a monthly basis, CPI rose by 0.4% in February, in line with expectations.
Excluding gas and food prices, categories that tend to be more volatile, “core” inflation rose 0.4% from the month before, bringing its annual rate to 3.8%, a slowdown from 3.9% in January.
Within the report, there was some good news for Americans: For the first time since April 2023, overall food prices did not rise. Grocery prices held flat, while “food away from home” ticked up last month by just 0.1%.
Yesterday, stocks rose as investors cheered the cooldown in some categories of inflation. The Dow rose 0.3%, the S&P 500 gained 0.5% and the NASDAQ Composite added 0.6%.
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