Although February’s Consumer Price Index (CPI) showed a modest slowdown to 2.8% year-over-year and 0.2% month-over-month, many Americans continue to feel elevated prices for everyday necessities. Food costs remain a primary concern. Eggs have jumped 59% year-over-year, averaging $5.90 per dozen compared with $2.99 a year earlier. Other breakfast items such as coffee and bacon have also increased in price, and meat costs continue to rise—ground beef climbed 2.7% to $5.96 per pound. Dining out is more expensive as well, with restaurant prices up 3.7% from a year ago.
The healthcare sector offers little respite. Medical services rose about 3% over the past year, while some categories experienced larger gains: home health care surged 5.6%, hospital services increased 3.6%, and nursing home care rose 4.1%. Health insurance premiums were up roughly 3.9% compared with February 2024, adding to household cost pressures.
Transportation costs remain a source of strain for many households. Used car prices ticked up 0.9% in February following a 2.2% increase in January. Auto insurance costs have continued climbing for the past two years and are now nearly 11% higher than they were a year ago, reflecting sustained underwriting losses across the industry. One area that eased slightly is fuel: gasoline fell to an average of $3.08 per gallon nationally, down from $3.39 a year earlier.
With headline inflation still above the Federal Reserve’s 2% target and uncertainty around trade policy and tariffs, expectations are that interest rates will remain unchanged at the Fed’s upcoming meeting. Even as some monthly readings show moderation, persistent increases in essentials—food, healthcare and transportation—mean many households continue to feel the effects of inflation in their daily budgets.