February 2019 Consumer Price Index
Submitted by Atlas Indicators Investment Advisors on March 19th, 2019
Prices increased for Americans during the month of February 2019 according to the Bureau of Labor Statistics’ Consumer Price Index (CPI). On a seasonally adjusted basis, this inflation measure increased 0.2 percent. Year-over-year, the all items index increased 1.5 percent.
Eating, sleeping, and going places all got more expensive in the period. The food index gained 0.4 percent, the largest gain since May 2014; both food at home and food away from home indexes increased. Shelter gained 0.3 percent for the fourth consecutive month. And then there was gasoline which jumped 1.5 percent, but this large increase is only a fraction of the three prior periods’ declines of over five percent each.
Core-CPI (which removes food and energy) was tamer on a monthly basis but has a higher year-over-year trend. This trimmed down look at inflation gained just 0.1 percent in February, but it is up 2.1 percent over the past year. Despite core-CPI’s faster trend, it did slow from the three prior reading which all hit 2.2 percent.
Inflation remains in a range with which the Federal Reserve is comfortable. America’s central bank sees 2.0 percent as an appropriate long-term target for price growth. With February’s decelerating trend, they are likely chuffed with their recent decision to be less aggressive (i.e., pausing their interest rate hikes).
