Finally some good news on the inflation front as consumer prices rose less than expected according to the latest data from the Bureau of Labor Statistics.
- M-O-M: Consumer prices rose 0.2% in February, down from the 0.5% jump in January and the first drop in growth in the last four months.
- Y-O-Y: Price growth slowed to 2.8% when compared to the same time last year, down from 3.0% in January and the lowest level since November.
Food & Energy: Food prices rose 0.2% in February, down from the 0.4% rise in January and the lowest level since October. Grocery prices were flat for the month with food away from home jumping 0.4% in February.
- Energy prices rose 0.2% in February, down from the 1.1% rise in January and the lowest level since November. Energy prices fell back into negative territory with prices down 0.2% year-over-year. Gasoline down 3.1% year-over-year
Core prices: rose 0.2% in February, down from the 0.4% jump in January and tied for the lowest level in the last five months.
- The annual index slowed to 3.1% in February, down from 3.3% in January and now at the lowest level since April 2021.
Shelter costs: The all about important housing index rose 0.3% in February, down from 0.4% in January, but this was the fourth time in five months that shelter costs rose 0.3%.
- Year-over-year shelter costs slowed to 4.2% in February, down from 4.4% in January and the lowest level since December 2021.
Beat The Street: Economists were expecting a much hotter month with prices rising 0.3% and annual growth slowing to 2.9%.
Bottom Line: With all the economic certainty right now, this was a much needed positive report for the economy.
