Annual Inflation Up 6% in February as Pace Continued to Slow
AllSides Summary
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."
Featured Coverage of this Story
From the Center
U.S. Inflation Cooled in February as Fed Confronts Bank Failures
Elevated inflation cooled modestly in February, as the Federal Reserve faces dual threats of rising prices and financial instability.
The consumer-price index, a closely watched inflation gauge, rose 6% in February from a year earlier, versus a 6.4% gain the prior month, the Labor Department said Tuesday, the slowest pace since September 2021. The smaller increase comes as the Fed contemplates its next interest rate move while confronting price pressures and bank failures.
When excluding volatile food and energy prices, consumer prices advanced 5.5% from a year earlier in February compared...
From the Left
Inflation fell for the eighth-straight month in February
Inflation remains elevated but the temperature is coming down, according to the latest Consumer Price Index.
The closely watched gauge of inflation, released Tuesday morning, showed that annual price increases continued to slow in February.
CPI measured 6% for the year ended in February, down from January’s 6.4% and in line with economists’ expectations.
On a monthly basis, prices were up 0.4%, representing a cooldown from the January monthly growth rate of 0.5%. Economists were expecting a gain of 0.4%.
When stripping out volatile energy and food prices, core CPI...
From the Right
Inflation declines to 6% in February in sigh of relief for economy
Inflation slowed to a 6% rate in the year ending in February, the Bureau of Labor Statistics reported Tuesday, a welcome sign as the Federal Reserve prepares to meet for a monetary policy meeting.
The much-anticipated numbers from the consumer price index shows that, while inflation is much too high, it is cooling in response to the Fed's aggressive interest rate hikes.
Inflation had been running at 6.4% the month before. Tuesday’s report marks seven straight months of declines in annual inflation after the rate peaked at a whopping 9.1% in June.
Prices overall grew...
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