February US CPI Report Shows Inflation at a 3.2% Annual Rate, Higher Than Expected

The Bureau of Labor Statistics reported that the Consumer Price Index climbed 3.2% in February from year-ago levels—an uptick from January’s 3.1% rate, but well below the January 2023 peak of 6.4%. Core CPI, which excludes volatile food and energy costs, rose 3.8% in February over the last 12 months after rising 3.9% in January.

The CPI rose 0.4% in February from month-ago levels after rising 0.3% in January. Core CPI also climbed 0.4%, matching the January increase.

Economists had expected the overall CPI reading in February to show 0.4% growth on a monthly basis, up from 0.3% growth in January, with the annual growth rate holding steady at 3.1%, according to FactSet’s consensus estimates.

February CPI Report Key Stats

• CPI rose 0.4% for the month after rising 0.3% in January.
• Core CPI increased 0.4% after rising by the same amount in January.
• CPI climbed 3.2% year over year after growing by 3.1% the prior month.
• Core CPI climbed 3.8% from year-ago levels after increasing 3.9% in January.

Food prices in February after increasing 0.4% in January. Food-at-home prices stayed the same over the month, while food-away-from-home (restaurant) prices increased 0.1%.

Energy prices increased over the month, up 2.3% overall after decreasing 0.9% the prior month. Utility (piped) gas service prices increased 2.3%, fuel oil prices climbed 1.1%, gasoline prices increased 3.8%, and electricity prices increased 0.3%.

In February, shelter prices climbed 0.4% after rising 0.6% in January.

This article was partially generated by Wordsmith, an automated smart-text platform, using data from the Bureau of Labor Statistics. The article has been reviewed by Morningstar editors.