The Wall Street Journal editor-at-large Gerry Baker on the importance of making tax cuts permanent and President Donald Trump blaming former President Biden for inflation during his congressional address.
Inflation cooled slightly in February even as the pace of price growth remained well above the Federal Reserve’s goal ahead of the central bank’s policy meeting next week.
The Labor Department on Wednesday said that the consumer price index (CPI) – a broad measure of how much everyday goods like gasoline, groceries and rent cost – increased 0.2% in February compared with last month, while it rose 2.8% on an annual basis.
Both the annual and monthly increases in headline inflation were cooler than the expectations of LSEG economists.
So-called core prices, which include more volatile measurements of gasoline and food to better assess price growth trends, were up 0.2% from the prior month and 3.1% on an annual basis, slower than the estimates of LSEG economists.
The report showed that inflationary pressures in the U.S. economy remain persistent despite progress in bringing inflation closer to the Federal Reserve’s 2% target over the past few years.
High inflation has created severe financial pressures for most U.S. households, which are forced to pay more for everyday necessities like food and rent. Price hikes are particularly difficult for lower-income Americans, because they tend to spend more of their already-stretched paycheck on necessities and have less flexibility to save money.
Food prices increased 0.2% in February. The index for food at home was unchanged over the month and up just 1.9% over the past 12 months.
Egg prices were up 10.4% on a monthly basis in February, while meat, poultry and fish prices rose 0.5%. Prices for fruits and vegetables as well as nonalcoholic beverages declined by 0.5% in February. Dairy prices saw a larger decline of 1% for the month.
The food away from home index was up 0.4% for February and is up 3.7% over the past year.
Energy prices were up 0.2% in February – a smaller monthly increase than the 1.1% rise recorded in January. Gasoline prices were down 1% last month on a seasonally adjusted basis, while natural gas prices were 2.5% higher.
Housing costs rose in February as the shelter index increased by 0.3% for the month. That leaves the shelter index 4.2% higher than a year ago, marking the smallest 12-month increase since December 2021.
This is a developing story. Please check back for updates.
