New York
CNN
—
Higher prices at the gas pump pushed up inflation more than expected in February, according to the latest Consumer Price Index from the Bureau of Labor Statistics.
However, stripping out categories that have more wild price swings — such as gasoline — inflation did slow in some key areas, fueling a touch of positive news for the Federal Reserve and consumers alike.
Overall, the closely watched inflation gauge showed that prices rose by 3.2% for the 12 months ended in February, the BLS said Tuesday. That’s up from January’s annual reading of 3.1%, and higher than economists’ expectations.
On a monthly basis, CPI rose by 0.4% in February, the fastest tick since September of last year.
Pushing inflation higher in February was a sharp climb in gas prices and the continued steady rise in shelter costs. Combined, those two categories were responsible for 60% of the monthly increase, the BLS said.
That monthly pace was right in line with the 0.4% increase that economists were expecting, according to FactSet consensus estimates.
Still, there was some good news for Americans: For the first time since April 2023, food prices did not rise. Food away from home ticked up last month by just 0.1%.
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.
This is a developing story and will be updated.
