Inflation rate hits 2.8% in February, less than expected
Source: CNBC
Published Wed, Mar 12 2025 8:30 AM EDT Updated 5 Min Ago
Prices for goods and services moved up less than expected in February, providing some relief as consumers and businesses worry about the looming impact tariffs might have on inflation, the Bureau of Labor Statistics reported Wednesday.
The consumer price index, a wide-ranging measure of costs across the U.S. economy, ticked up a seasonally adjusted 0.2% for the month, putting the annual inflation rate at 2.8%, according to the Labor Department agency. The all-item CPI had increased 0.5% in January.
Excluding food and energy prices, the core CPI also rose 0.2% on the month and was at 3.1% on a 12-month basis. The core CPI had climbed 0.4% in January.
Economists surveyed by Dow Jones had been looking for 0.3% increases on both headline and core, with respective annual rates of 2.9% and 3.2%, meaning that all of the rates were 0.1 percentage point less than expected.
Read more: https://www.cnbc.com/2025/03/12/cpi-inflation-report-february-2025.html
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CPI for all items rises 0.2% in February; shelter up, gasoline declines #BLSData https://bls.gov/news.release/cpi.nr0.htm
8:31 AM · Mar 12, 2025
Article updated.
Previous article -
Prices for goods and services moved up less than expected in February as consumers and businesses worry about the impact tariffs might have on inflation, the Bureau of Labor Statistics reported Wednesday.
The consumer price index, a wide-ranging measure of costs across the U.S. economy, ticked up a seasonally adjusted 0.2% for the month, putting the annual inflation rate at 2.8%, according to the Labor Department agency.
Excluding food and energy prices, core CPI also rose 0.2% on the month and was at 3.1% on a 12-month basis.
Economists surveyed by Dow Jones had been looking for 0.3% increases on both headline and core, with respective annual rates of 2.9% and 3.2%, meaning that all of the rates were 0.1 percentage point less than expected.
Original article -
The consumer price index was expected to increase 0.3% in February and 2.9% from a year ago, according to the Dow Jones consensus forecast.
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News report from the source: https://www.bls.gov/news.release/cpi.nr0.htm
CPI data series: https://data.bls.gov/timeseries/CUSR0000SA0
CORE CPI data series: http://data.bls.gov/timeseries/CUSR0000SA0L1E
I annualize everything to be comparable to each other and to compare to the Fed's 2% target
They are calculated using the actual index values, not from the rounded off monthly change numbers.
The CPI rise averaged 4.3% over the past 3 months on an annualized basis (core CPI: 3.6%)
The February one month increase annualized is: CPI: 2.6%, CORE CPI: 2.8%
REGULAR CPI
CORE CPI = CPI less food and energy
rolling 12 months averages graphs are in the OP
One reason for the decline in the 12 month average aka year-over-year is that the big Febrary 2024 increases dropped out of the 12 month window.
CPI increase in February 2024: 0.40% (4.86% annualized)
Core CPI increase in February 2024: 0.37% (4.54% annualized)
The number dropping out of the 12 month window is just as important as the one entering the 12 month window.
If the incoming number is lower than the outgoing number, then the 12 month average drops, plain and simple. (Similarly with any n-month rolling average).
Can't afford to run the heat. Was 52 degrees inside the other day.
No one unless they are quite rich can afford to live in this economy.
Who can fit an $800/month PG&E bill into their budget?
