The US Consumer Price Index (CPI) increased 0.2 per cent in February on a seasonally adjusted basis, slowing from a 0.5 per cent rise in January, the Bureau of Labor Statistics (BLS) reported on Wednesday. On an annual basis, inflation stood at 2.8 per cent before seasonal adjustment, compared to 3.0 per cent in January. Shelter costs remained a key driver of inflation, rising 0.3 per cent and contributing nearly half of February's increase. However, it was partially offset by a 4.0 per cent drop in airline fares and a 1.0 per cent decline in gasoline prices. Despite lower fuel costs, the broader energy index rose 0.2 per cent due to increases in electricity and natural gas prices. Food prices climbed 0.2 per cent last month, led by a 0.4 per cent increase in food away from home, while food at home remained unchanged. Notably, egg prices surged 10.4 per cent, contributing to a 1.6 per cent rise in the meats, poultry, fish, and eggs category. Excluding food and energy, core inflation also slowed, rising 0.2 per cent in February compared to 0.4 per cent in January. Price increases were recorded in medical care, used cars and trucks, household furnishings, recreation, apparel, and personal care. Meanwhile, new vehicle prices fell 0.1 per cent, and airline fares posted a sharp 4.0 per cent decline. Over the past year, core inflation stood at 3.1 per cent, with shelter costs up 4.2 per cent, marking the slowest annual increase since December 2021. Motor vehicle insurance saw a notable 11.1 per cent rise, while medical care costs increased 2.9 per cent. The energy index declined 0.2 per cent year-on-year, with gasoline prices falling 3.1 per cent and fuel oil down 5.1 per cent. In contrast, electricity costs rose 2.5 per cent, and natural gas climbed 6.0 per cent over the past 12 months. The latest inflation figures suggest a moderation in price pressures following stronger increases in January. The Federal Reserve will closely monitor these trends as it evaluates potential shifts in monetary policy. Attribution: Amwal Al Ghad English Subediting: Y.Yasser Download
