Price increases have slowed slightly, as the consumer price index rose just 0.4 percent in February.
According to the U.S. Bureau of Labor Statistics, the 12-month index is up 6 percent through February, the lowest year-over-year increase since September 2021.
The new numbers released Tuesday come a week before Federal Reserve officials meet to consider additional interest rate hikes in the continued battle against inflation. In February, the Fed raised rates 25 basis points, setting a new target range on federal funds at 4.5 to 4.75. It was the eighth rate increase in the past year and followed previous hikes of three-quarters and half a point.
The 0.4 percent CPI increase in February followed a 0.5 percent increase in January. Food and shelter were among the largest item increases in February.
“The index for shelter was the largest contributor to the monthly all items increase, accounting for over 70 percent of the increase, with the indexes for food, recreation, and household furnishings and operations also contributing,” according to the BLS press release. “The food index increased 0.4 percent over the month with the food at home index rising 0.3 percent.”
Used vehicle prices on the CPI were down 2.8 percent and have seen a decrease of 13.6 percent in a 12-month period.
“The index for used cars and trucks and the index for medical care were among those that decreased over the month,” the press release noted.
Consumers are paying a lot more for car insurance. According to the index, motor vehicle insurance is up 14.5 percent in the past year.
