U.S. inflation rose less than expected in February, as the Consumer Price Index (CPI) increased 0.2% for the month, bringing the annual inflation rate to 2.8%.
Core CPI, which excludes volatile food and energy components, also climbed 0.2% for the month and stood 3.1% higher than a year earlier. Both readings were 0.1 percentage point below economist forecasts, offering some relief amid concerns that tariffs or other shocks could push inflation higher down the road.
Housing costs, which account for more than one-third of the CPI basket, rose 0.3% in February and contributed roughly half of that month’s overall CPI increase. Food and energy indexes each rose 0.2% for the month. Among other categories, used-vehicle prices jumped 0.9% while apparel prices increased 0.6%.
Some individual items showed large moves: eggs surged 10.4% for the month and were up 58.8% year over year, and motor vehicle insurance rose 0.3% for the month and 11.1% on an annual basis. By contrast, airline fares fell sharply, decreasing 4.0% in February, partially offsetting price pressures elsewhere.
Overall, the February CPI data suggest inflationary pressures remain present but slightly less intense than analysts had anticipated, with shelter costs continuing to be a dominant influence on the index.