U.S. inflation continued to outpace expectations in February as prices on consumer goods and services inched up .4% from the previous month and 3.2% from the same time last year, according to a federal report released Tuesday. The main culprits behind the uptick, according to Labor Department’s Consumer Price Index Summary for February, are energy prices and the cost of shelter. Changes in the cost of shelter have an outsize impact on the consumer price index as the metric accounts for about one-third of the overall rate.
A Tuesday Labor Department report finds U.S. inflation was up .4% in February from the previous month and hit an annual rate of 3.2%, with both upticks outpacing economists' expectations. The new data is likely to bolster the Federal Reserve's wait-and-see approach to reducing its benchmark interest rates, which remain at the highest level in decades.
January inflation came in at 3.1%, down from December but higher than the 2.9% most economists expected. While inflation decreased, U.S. housing and food costs continue to rise.
January inflation came in at 3.1%, down from December but higher than the 2.9% most economists expected. While inflation decreased, U.S. housing and food costs continue to rise.
Inflation ticked up in December, according to the U.S. Department of Labor. While sharp rises in the costs of some essentials pushed inflation up to close the year, other consumer goods and services saw more moderate rises.