Annual Inflation Up 6% in February as Pace Continued to Slow

Consumer prices were up 0.4% in February from a month before and up 6% over the last 12 months, according to the Bureau of Labor Statistics. 

The Details: The biggest annual prices increases were for transportation services (14.6%), energy services (13.3%), and food (9.5%). Gasoline (1%) and shelter (0.8%) were among the items with the largest monthly price increases, while the energy index overall fell 0.6%. The prices of used cars and trucks were down 13.6% in February from a year before. When stripping out the more volatile energy and food items, "core" prices grew 0.5% on a monthly basis and 5.5% annually.

For Context: The pace of annual inflation has now slowed for seven straight months after peaking at 9.1% in June 2022. Tuesday's report was closely watched amid fallout from Silicon Valley Bank's failure.

How the Media Covered It: Headlines from all sides said inflation fell or declined. Reports across the spectrum credited the Federal Reserve's interest rate bumps for helping slow inflation. Center- and right-rated outlets focused more on how prices remain elevated. The Wall Street Journal said inflation remains "stubbornly high." The Washington Examiner reported that "while inflation is much too high, it is cooling in response to the Fed's aggressive interest rate hikes."