Understanding the Shift

The United States witnessed a slight decrease in its annual inflation rate, moving from 3% in January to 2.8% in February. This change, as reported by the Department of Labor Statistics, comes slightly under market expectations. The Consumer Price Index (CPI) showed a modest increase of 0.2% from the previous month.

Energy and Food Prices

Energy prices saw a decline of 0.2% on an annual basis but experienced a slight increase of 0.2% monthly. Conversely, food prices rose both annually and monthly, by 2.6% and 0.2% respectively.

Core CPI Insights

The core CPI, which excludes food and energy, recorded a 3.1% increase compared to February 2024 and a 0.2% rise from January. This indicates a steady growth in prices outside the volatile food and energy sectors.