BLS Releases February 2019 Consumer Price Index (March 2019)

The Consumer Price Index report released by the U.S. Bureau of Labor Statistics provides the latest evidence that inflation is soft; further evidence that the Federal Reserve Bank’s current policy stance of wait-and-see remains unaltered.  The Consumer Price Index for all urban consumers (CPI-U) rose a seasonally adjusted 0.2 percent in February from the prior month.  Over the last 12 months the all items index increased by 1.5 percent before seasonal adjustment.

The energy index edged upward slightly after declining in the three previous months.  Overall the energy index rose by 0.4 percent particularly commodities of gasoline (up 1.5%) and fuel oil (up 2.6%); meanwhile the energy services (electricity and utility-piped gas) declined.  Food indexes—food at home and food away from home—each increased by 0.4 percent in February. 

Core inflation—all items minus food and energy—rose 0.1 percent in February.  The Fed’s preferred gauge has held steady at around its 2.0 percent price growth target a “healthy for the economy” level.  Along with the shelter index the indexes for personal care apparel and education all increased.  In contrast the indexes for recreation medical care used cars and trucks and new vehicles all declined in February.

The all items index increased 1.5 percent over the last 12 months ending in February; marking the smallest increase since the period ending in September 2016.  The energy index decreased by 5.0 percent while the food index increased by 2.0 percent over the last 12 months.  Core inflation rose 2.1 percent over the last 12 months.  The Fed has pointed to muted inflation pressures in recent weeks as one reason for the pause in their raising of short-term rates. 

The full press release can be found via the pdf below.

Next release is Wednesday April 10 2019 for the March 2019 Consumer Price Index.