Consumer prices rose 0.3% in February, slightly faster than January’s 0.2% increase, according to the Bureau of Labor Statistics.
Shelter costs remained the biggest driver of monthly inflation, while food and energy prices also climbed.
Annual inflation held steady at 2.4%, with food prices rising faster than the overall rate over the past year.
U.S. consumer prices ticked up in February as higher housing, food, and energy costs pushed inflation slightly higher for the month, according to new data from the Bureau of Labor Statistics.
The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.3% on a seasonally adjusted basis in February, following a 0.2% increase in January. On an annual basis, consumer prices were 2.4% higher than a year earlier, the same rate reported for the 12 months ending in January.
But keep in mind, these numbers don’t include any costs after the beginning of the Iran war. The March numbers could be significantly higher.
The cost of shelter
Housing costs continued to play the biggest role in the monthly increase. The shelter index rose 0.2% in February, making it the largest contributor to the overall rise in prices.
Food prices also moved higher during the month. The food index increased 0.4%, with prices for groceries (food at home) rising 0.4%, and restaurant prices (food away from home) climbing 0.3%.
Energy costs increased as well, with the energy index rising 0.6% in February.
Excluding the often-volatile food and energy categories, so-called core inflation rose 0.2% in February. Several categories recorded price increases, including medical care, apparel, household furnishings and operations, airline fares, and education.
Where prices went down
Some categories saw declines. Prices for communication services, used cars and trucks, motor vehicle insurance, and personal care were among the notable indexes that fell during the month.
Over the past year, price changes varied widely across categories. While overall inflation was 2.4%, the food index rose 3.1% over the last 12 months, outpacing the overall rate. The energy index increased 0.5% year over year, while the core index (excluding food and energy) rose 2.5%.
The data suggest inflation remains relatively stable compared with recent months, though essential household costs such as food and housing continue to contribute significantly to consumer expenses.