Though shifting U.S. trade policies make the situation more complex, price rise in February moderated more than anticipated, which is encouraging for markets that have been alarmed by the prospect of further inflation.
The Bureau of Labor Statistics said Wednesday that the consumer price index increased 2.8% in February compared to the previous year, which was lower than expected and slower than the 3% annual rate in January.
From January to February, inflation increased by 0.2%, which was lower than the 0.4% monthly rate in January and higher than the 0.3% forecast. The steep drop in airfares (down 4%), followed by a modest 0.1% drop in new car costs, led the slide.
The 4.2% increase in housing costs was the lowest 12-month increase since December 2021. Although they were up 58% from a year ago, egg prices have already started to decline this month. Read more...