The February consumer price index was flat, as was the core rate, contrary to predictions that the index would rise, the Labor Department reported Friday.
In January, CPI rose 0.4%, while the core rate was up 0.3%. Over the year CPI posted a 4.0% rise, compared to a 2.3% increase in the core rate year-over-year.
Economists polled by IFR Markets had predicted CPI would be up 0.3%, the core rate would rise 0.2%, the year-over-year CPI would be 4.2% higher, and the year-over-year core would be up 2.4%.
Energy was down 0.5%, while CPI excluding energy rose 0.1%. Gasoline fell 2.0% in the month, but in the past year rose a staggering 32.7%. Fuel oil fell 1.5% and electric declined 0.3%.
Food rose 0.4%, and CPI excluding food was steady. The index for household fuels jumped 1.5%, as a 7.2% increase in the index for natural gas more than offset decreases in the indexes for fuel oil and for electricity, Labor said.
Housing costs grew 0.2%, while new vehicle prices dropped 0.3%. Transportation slid 0.7% as airfare was off 0.3%. Apparel prices dipped 0.3%.
Other goods and services prices increased 0.2%, and medical costs rose 0.1%.
On a chain-weighted basis CPI rose 0.3%.
“Each of the three groups — food, energy, and all items less food and energy — contributed to the deceleration,” in the Labor Department said. “The index for food at home, which rose 0.9% in January, increased 0.3%. The moderation reflected a downturn in the indexes for fruits and vegetables, for meats, poultry, fish, and eggs, and for nonalcoholic beverages. The index for energy turned down in February as a 1.9% decline in the index for energy commodities more than offset a 1.7% increase in the index for energy services. The index for all items less food and energy was virtually unchanged after increasing 0.3% in January. The deceleration reflects smaller increases in the indexes for shelter, for medical care, for recreation, for education and communication, and for other goods and services, and a decline in the index for apparel.”
Within the housing index, the index for shelter was virtually unchanged in February, following a 0.3% increase in January. “Within shelter, the indexes for rent and for owners’ equivalent rent increased 0.2 and 0.1%, respectively, while the index for lodging away from home fell 1.2 %,” Labor reported.
