Inflation was less than expected in February

The Bureau of Labor Statistics reports the Consumer Price Index rose 0.2% in February, slightly less than most forecasts. It follows January’s hotter than expected 0.4% rise in the CPI. Over the last 12 months, the inflation rate is 2.8%.

The cost of gasoline and fuel oil helped keep the CPI in check last month. The gasoline index fell 0.9% and is down 3.1% on the year. Transportation services costs came down from their recent highs, falling 0.8% in February.

Food consumed at home, the category for grocery prices, was flat in February after jumping 0.5% in January. The cost of dairy and related products fell by 1% while the cost of fruits and vegetables, non-alcholic beverages and “other” food at home all declined by 0.5%.

The category of meats, poultry, fish, and eggs continued its surge, mostly driven by egg prices, rising 1.6% from January and is up 7.7% year-over-year.

Menu prices are still rising

Dining out continued to be expensive. Food consumed away from home, the category for restaurant prices, rose 0.4% and is up 3.7% over the last year.

The index for shelter rose 0.3% in February, accounting for nearly half of the monthly increase. Rent and owners' equivalent of rent both rose 0.3%.

The shelter increase was partially offset by a 4% decrease in the index for airline fares. The cost of new vehicles also fell slightly while used car prices rose slightly.

The cost of owning a car or truck also rose last month. Maintenance and repair costs rose 0.3% and are up 5.8% on the year. The cost of auto insurance also rose 0.3% but is up over 11% over the last 12 months.