U.S. Consumer Prices Increase 0.3% In February, In Line With Estimates

(RTTNews) - A report released by the Labor Department on Wednesday showed consumer prices in the U.S. increased in line with economist estimates in the month of February.

The Labor Department said its consumer price index climbed by 0.3 percent in February after rising by 0.2 percent in January. The growth matched expectations.

The report also said the annual rate of growth by consumer prices came in at 2.4 percent in February, unchanged from January and in line with estimates.

"February CPI readings as expected were subdued but given the disruption to energy supplies from the Iranian conflict the focus is on the extent and duration of the boost to inflation in the coming months," said Nationwide Chief Economist Kathy Bostjancic.

She added, "We see an increasing risk that CPI inflation accelerates to over 4% (year-over-year) in the coming few months, before easing back in the following months."

The monthly increase by consumer prices partly reflected a rebound by energy prices, which grew by 0.6 percent in February after tumbling by 1.5 percent in January.

Food prices also climbed by 0.4 percent in February after rising by 0.2 percent in January, reflecting higher prices for both food at home and food away from home.

Excluding the increases in food and energy prices, core consumer prices rose by 0.2 percent in February after increasing by 0.3 percent in January, which was also in line with estimates.

The annual rate of growth by core consumer prices was unchanged from the previous month at 2.5 percent, matching expectations.

The uptick in core prices reflected a 0.2 percent increase in shelter costs as well as higher prices for medical care, apparel, household furnishings and operations, airline fares, and education.

Meanwhile, prices for communication, used cars and trucks, motor vehicle insurance, and personal care were among those that decreased in February, the Labor Department said.