The consumer price index (CPI) rose by a seasonally adjusted 0.2% in February, falling short of economists' expectations, according to recent data. The annual inflation rate stood at 2.8%, underscoring a modest increase that was lower than the predicted 2.9% for headline inflation. Meanwhile, core CPI, which excludes volatile items such as food and energy, also climbed by 0.2% for the month and reached 3.1% on a 12-month basis.
Breaking down the numbers, the food index experienced a 0.2% rise, contributing significantly to the overall CPI increase. Notably, egg prices surged by a staggering 10.4% for the month, marking a dramatic 58.8% rise over the past year. This escalation in egg prices highlights the volatility within the food category, which constitutes more than one-third of the total weight in the CPI.
The energy index mirrored the food index with a 0.2% increase as well, contributing to the overall inflation picture. Shelter costs, on the other hand, moved up by 0.3% and accounted for about half of the monthly increase in CPI. Homeowners' evaluations of potential rental income for their properties played a part in these shelter cost adjustments.
In contrast to the actual figures, economists surveyed by Dow Jones had anticipated a 0.3% rise for both headline and core inflation rates. The discrepancy between expected and actual results indicated an inflationary environment that was slightly less severe than forecasted. The core CPI also registered a smaller-than-expected annual increase of 3.1%, against economists' projections of 3.2%.