Inflation Holds Steady in February with 0.2% CPI Increase

The Consumer Price Index (CPI) for February 2025 showed a modest increase of 0.2% compared to January, following a 0.5% rise the previous month. Over the past year, the overall CPI has risen by 2.8%.

Housing costs played a major role in the monthly increase, with the shelter index rising 0.3%, contributing almost half of the total CPI increase. However, this was offset by a 4.0% drop in airline fares and a 1.0% decrease in gasoline prices.

Despite lower gasoline costs, the energy index still rose by 0.2%, driven by higher electricity and natural gas prices. Food prices also saw a slight increase of 0.2%, with eating out becoming more expensive, though groceries remained unchanged.

Excluding food and energy, the core CPI rose by 0.2%, slightly lower than the 0.4% increase in January. Notable increases were seen in medical care, used cars, household items, apparel, and personal care, while airline fares and new vehicles saw decreases.

Over the last 12 months, the CPI has climbed 2.8%, down from a 3.0% increase in January. The core CPI increased by 3.1% during the same period, while energy costs fell by 0.2%. Food prices rose by 2.6% year-over-year.