The Bureau of Labor Statistics released its monthly Consumer Price Index Summary on March 12, showing that its all-items index increased 2.8% for the 12 months ending February.

On a monthly basis, February’s all-items index increased 0.2%, following a 0.5% rise in January and 0.4% gain in December.  This is the smallest gain since October.

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Economists polled by Reuters expected the monthly CPI core index to rise 0.3%. Meanwhile, the annual overall gain fell short of economist expectations of 2.9%.

According to Reuters, the Bureau’s release did not capture the potential impact of tariffs on the CPI, which has caused a surge in consumers’ inflation expectations.

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The monthly index for shelter rose 0.3% in February vs. January, which accounted for nearly half of the all-items increase. The index for food increased 0.2% in January, while the index for food at home remained unchanged over the month and the index for food away from home increased 0.4%.

The monthly index for all-items less food and energy—known as core inflation—rose 0.2% in February, following a 0.4% increase in January. Indexes that increase in February, include: medical care, use cars and trucks, household furnishings and operations, recreation, apparel and personal care.

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One a year-over-year basis, February’s core inflation rose 3.1%. The year-over-year energy index decreased 0.2%, while the food index increased 2.6%.

U.S. Core Inflation Rate Month-to-Month

source: tradingeconomics.com

U.S. Core Inflation Rate Year-Over-Year

source: tradingeconomics.com