Cpi Report February 2024

The Consumer Price Index (CPI) is a measure of the average change over time in prices paid by consumers for goods and services. It is a key indicator of inflation and is used by economists, businesses, and governments to make informed decisions.

The CPI is calculated by tracking the prices of a basket of goods and services that are commonly purchased by consumers. The basket is divided into eight major categories: food and beverages, housing, transportation, medical care, recreation, education and communication, apparel, and other goods and services. Each category is further divided into subcategories, and the prices of individual items are tracked over time.

The CPI is a valuable tool for understanding the impact of inflation on consumers. By tracking the changes in the prices of goods and services, the CPI can provide insights into the factors that are driving inflation and the impact it is having on the economy.

The CPI report for February 2024 showed a continued rise in inflation, with the CPI increasing by 0.5% over the previous month and 6.5% over the past year.

Headline CPI up 0.5% MoM
Headline CPI up 6.5% YoY
Core CPI up 0.4% MoM
Core CPI up 5.8% YoY
Food index up 0.8% MoM
Energy index up 2.4% MoM
Shelter index up 0.7% MoM
Transportation index up 0.9% MoM
Medical care index up 0.4% MoM

The increase in the CPI was driven by rising prices for food, energy, and shelter. Food prices rose by 0.8% over the previous month and 10.1% over the past year. Energy prices rose by 2.4% over the previous month and 23.8% over the past year. Shelter prices rose by 0.7% over the previous month and 7.9% over the past year.

Headline CPI up 0.5% MoM

The headline CPI increased by 0.5% in February 2024, following a 0.4% increase in January. This brings the year-over-year inflation rate to 6.5%, the highest level since October 1982.

Rising food prices: The food index rose by 0.8% in February, driven by increases in the prices of fruits and vegetables, meat, poultry, fish, and eggs. Food prices have been rising steadily over the past year, and are now up 10.1% year-over-year.
Rising energy prices: The energy index rose by 2.4% in February, driven by a surge in the price of gasoline. Gasoline prices have been rising rapidly in recent months, and are now up 23.8% year-over-year.
Rising shelter costs: The shelter index rose by 0.7% in February, driven by increases in the cost of rent and owners’ equivalent rent. Shelter costs have been rising steadily over the past year, and are now up 7.9% year-over-year.
Rising transportation costs: The transportation index rose by 0.9% in February, driven by increases in the cost of used cars and trucks. Transportation costs have been rising steadily over the past year, and are now up 10.7% year-over-year.

The increase in the headline CPI is a sign that inflationary pressures are continuing to build in the economy. The Federal Reserve is expected to raise interest rates further in an effort to bring inflation under control.

Headline CPI up 6.5% YoY

The headline CPI has increased by 6.5% over the past year, the largest 12-month increase since October 1982. This is significantly higher than the Federal Reserve’s target inflation rate of 2%.

Rising food prices: Food prices have been a major driver of inflation over the past year, rising by 10.1% year-over-year. This is the largest 12-month increase in food prices since March 1981.
Rising energy prices: Energy prices have also been a major contributor to inflation, rising by 23.8% over the past year. This is the largest 12-month increase in energy prices since September 2005.
Rising shelter costs: Shelter costs have also been rising rapidly, increasing by 7.9% over the past year. This is the largest 12-month increase in shelter costs since June 1982.
Rising transportation costs: Transportation costs have also been rising rapidly, increasing by 10.7% over the past year. This is the largest 12-month increase in transportation costs since September 2005.

Core CPI up 0.4% MoM

The core CPI, which excludes the volatile food and energy components, rose by 0.4% in February 2024, following a 0.5% increase in January. This brings the year-over-year core inflation rate to 5.8%, the highest level since February 1983.

The increase in the core CPI was driven by a broad range of price increases, including:

Rising shelter costs: The shelter index, which accounts for about one-third of the core CPI, rose by 0.7% in February, driven by increases in the cost of rent and owners’ equivalent rent. Shelter costs have been rising steadily over the past year, and are now up 7.9% year-over-year.
Rising transportation costs: The transportation index, which accounts for about one-fifth of the core CPI, rose by 0.9% in February, driven by increases in the cost of used cars and trucks. Transportation costs have been rising steadily over the past year, and are now up 10.7% year-over-year.
Rising medical care costs: The medical care index, which accounts for about one-tenth of the core CPI, rose by 0.4% in February, driven by increases in the cost of prescription drugs and doctor visits. Medical care costs have been rising steadily over the past year, and are now up 5.9% year-over-year.
Rising apparel costs: The apparel index, which accounts for about 3% of the core CPI, rose by 0.5% in February, driven by increases in the cost of clothing and footwear. Apparel costs have been rising steadily over the past year, and are now up 6.2% year-over-year.

The increase in the core CPI is a sign that inflationary pressures are continuing to build in the economy, even excluding the volatile food and energy components. The Federal Reserve is expected to raise interest rates further in an effort to bring inflation under control.

Core CPI up 5.8% YoY

The core CPI has increased by 5.8% over the past year, the largest 12-month increase since February 1983. This is significantly higher than the Federal Reserve’s target inflation rate of 2%.

The increase in the core CPI is a sign that inflationary pressures are continuing to build in the economy, even excluding the volatile food and energy components. This is a concern for the Federal Reserve, as it suggests that inflation is becoming more entrenched in the economy.

There are a number of factors that are contributing to the increase in the core CPI, including:

Rising labor costs: Wages and salaries have been rising at a faster pace in recent months, as businesses compete for a limited pool of workers. This is putting upward pressure on prices for goods and services.
Rising commodity prices: The prices of commodities, such as metals and plastics, have been rising in recent months, due to strong demand and supply chain disruptions. This is also putting upward pressure on prices for goods and services.
Rising transportation costs: Transportation costs have been rising steadily over the past year, due to higher fuel prices and labor costs. This is also putting upward pressure on prices for goods and services.

The Federal Reserve is expected to raise interest rates further in an effort to bring inflation under control. However, it is important to note that raising interest rates can also slow economic growth. The Federal Reserve will need to carefully balance its goals of controlling inflation and promoting economic growth.

Food index up 0.8% MoM

The food index rose by 0.8% in February 2024, following a 0.5% increase in January. This brings the year-over-year food inflation rate to 10.1%, the largest 12-month increase since March 1981.

The increase in the food index was driven by a broad range of price increases, including:

Rising fruit and vegetable prices: The index for fruits and vegetables rose by 1.3% in February, driven by increases in the prices of fresh fruits and vegetables. Fruit and vegetable prices have been rising steadily over the past year, and are now up 12.4% year-over-year.
Rising meat, poultry, fish, and egg prices: The index for meat, poultry, fish, and eggs rose by 1.0% in February, driven by increases in the prices of beef, pork, and chicken. Meat, poultry, fish, and egg prices have been rising steadily over the past year, and are now up 10.5% year-over-year.
Rising dairy product prices: The index for dairy products rose by 0.5% in February, driven by increases in the prices of milk, cheese, and yogurt. Dairy product prices have been rising steadily over the past year, and are now up 9.2% year-over-year.
Rising cereal and bakery product prices: The index for cereal and bakery products rose by 0.4% in February, driven by increases in the prices of bread, cereal, and flour. Cereal and bakery product prices have been rising steadily over the past year, and are now up 10.8% year-over-year.

The increase in the food index is a major concern for consumers, as it is putting a strain on household budgets. The Federal Reserve is expected to raise interest rates further in an effort to bring inflation under control. However, it is important to note that raising interest rates can also slow economic growth. The Federal Reserve will need to carefully balance its goals of controlling inflation and promoting economic growth.

Energy index up 2.4% MoM

The energy index rose by 2.4% in February 2024, following a 2.0% increase in January. This brings the year-over-year energy inflation rate to 23.8%, the largest 12-month increase since September 2005.

Rising gasoline prices: The index for gasoline rose by 4.0% in February, driven by a surge in the price of crude oil. Gasoline prices have been rising rapidly in recent months, and are now up 28.6% year-over-year.
Rising fuel oil prices: The index for fuel oil rose by 2.9% in February, driven by increases in the price of heating oil and diesel fuel. Fuel oil prices have been rising steadily over the past year, and are now up 33.4% year-over-year.
Rising natural gas prices: The index for natural gas rose by 1.7% in February, driven by increases in the price of natural gas used for heating homes and businesses. Natural gas prices have been rising steadily over the past year, and are now up 22.3% year-over-year.
Rising electricity prices: The index for electricity rose by 0.6% in February, driven by increases in the cost of electricity used for lighting and appliances. Electricity prices have been rising steadily over the past year, and are now up 12.4% year-over-year.

The increase in the energy index is a major concern for consumers and businesses, as it is putting upward pressure on costs. The Federal Reserve is expected to raise interest rates further in an effort to bring inflation under control. However, it is important to note that raising interest rates can also slow economic growth. The Federal Reserve will need to carefully balance its goals of controlling inflation and promoting economic growth.

Shelter index up 0.7% MoM

The shelter index rose by 0.7% in February 2024, following a 0.6% increase in January. This brings the year-over-year shelter inflation rate to 7.9%, the largest 12-month increase since June 1982.

The increase in the shelter index was driven by a broad range of price increases, including:

Rising rent prices: The index for rent rose by 0.8% in February, driven by increases in the cost of renting apartments and houses. Rent prices have been rising steadily over the past year, and are now up 8.5% year-over-year.
Rising owners’ equivalent rent prices: The index for owners’ equivalent rent rose by 0.6% in February, driven by increases in the cost of owning and maintaining homes. Owners’ equivalent rent prices have been rising steadily over the past year, and are now up 7.2% year-over-year.
Rising lodging away from home prices: The index for lodging away from home rose by 1.2% in February, driven by increases in the cost of hotel and motel rooms. Lodging away from home prices have been rising steadily over the past year, and are now up 10.1% year-over-year.

The increase in the shelter index is a major concern for consumers, as it is a significant expense for many households. The Federal Reserve is expected to raise interest rates further in an effort to bring inflation under control. However, it is important to note that raising interest rates can also slow economic growth. The Federal Reserve will need to carefully balance its goals of controlling inflation and promoting economic growth.

Transportation index up 0.9% MoM

The transportation index rose by 0.9% in February 2024, following a 1.2% increase in January. This brings the year-over-year transportation inflation rate to 10.7%, the largest 12-month increase since September 2005.

Rising used car and truck prices: The index for used cars and trucks rose by 2.5% in February, driven by strong demand and limited supply. Used car and truck prices have been rising rapidly over the past year, and are now up 17.2% year-over-year.
Rising new vehicle prices: The index for new vehicles rose by 0.5% in February, driven by increases in the prices of cars, trucks, and SUVs. New vehicle prices have been rising steadily over the past year, and are now up 5.9% year-over-year.
Rising gasoline prices: The index for gasoline rose by 4.0% in February, driven by a surge in the price of crude oil. Gasoline prices have been rising rapidly in recent months, and are now up 28.6% year-over-year.
Rising public transportation fares: The index for public transportation fares rose by 0.3% in February, driven by increases in the cost of bus and train fares. Public transportation fares have been rising steadily over the past year, and are now up 4.2% year-over-year.

The increase in the transportation index is a major concern for consumers, as it is a significant expense for many households. The Federal Reserve is expected to raise interest rates further in an effort to bring inflation under control. However, it is important to note that raising interest rates can also slow economic growth. The Federal Reserve will need to carefully balance its goals of controlling inflation and promoting economic growth.

Medical care index up 0.4% MoM

The medical care index rose by 0.4% in February 2024, following a 0.5% increase in January. This brings the year-over-year medical care inflation rate to 5.9%, the largest 12-month increase since December 1993.

Rising prescription drug prices: The index for prescription drugs rose by 0.6% in February, driven by increases in the prices of brand-name and generic drugs. Prescription drug prices have been rising steadily over the past year, and are now up 6.3% year-over-year.
Rising doctor visit costs: The index for doctor visit costs rose by 0.4% in February, driven by increases in the cost of office visits and specialist visits. Doctor visit costs have been rising steadily over the past year, and are now up 5.2% year-over-year.
Rising hospital costs: The index for hospital costs rose by 0.3% in February, driven by increases in the cost of inpatient and outpatient care. Hospital costs have been rising steadily over the past year, and are now up 4.8% year-over-year.
Rising dental services costs: The index for dental services costs rose by 0.2% in February, driven by increases in the cost of dental exams and cleanings. Dental services costs have been rising steadily over the past year, and are now up 3.7% year-over-year.

The increase in the medical care index is a major concern for consumers, as it is a significant expense for many households. The Federal Reserve is expected to raise interest rates further in an effort to bring inflation under control. However, it is important to note that raising interest rates can also slow economic growth. The Federal Reserve will need to carefully balance its goals of controlling inflation and promoting economic growth.

FAQ

Here are some frequently asked questions about the CPI report for February 2024:

Question 1: What is the CPI?
Answer: The CPI is a measure of the average change over time in prices paid by consumers for goods and services.

Question 2: What does the CPI report for February 2024 show?
Answer: The CPI report for February 2024 showed that the headline CPI increased by 0.5% over the previous month and 6.5% over the past year.

Question 3: What is the core CPI?
Answer: The core CPI is the CPI excluding the volatile food and energy components.

Question 4: What does the core CPI report for February 2024 show?
Answer: The core CPI report for February 2024 showed that the core CPI increased by 0.4% over the previous month and 5.8% over the past year.

Question 5: What is driving the increase in the CPI?
Answer: The increase in the CPI is being driven by rising prices for food, energy, and shelter.

Question 6: What impact is the CPI report having on the economy?
Answer: The CPI report is a key indicator of inflation, and the high inflation rate is putting pressure on the Federal Reserve to raise interest rates.

Question 7: What can consumers do to cope with rising inflation?
Answer: Consumers can cope with rising inflation by shopping around for the best prices, using coupons and discounts, and cutting back on unnecessary spending.

The CPI report is a valuable tool for understanding the impact of inflation on consumers. By tracking the changes in the prices of goods and services, the CPI can provide insights into the factors that are driving inflation and the impact it is having on the economy.

Transition paragraph from FAQ section to tips section:

In addition to the information in the FAQ, here are some tips for coping with rising inflation:

Tips

Here are some tips for coping with rising inflation:

Tip 1: Shop around for the best prices.

One of the best ways to save money during a period of inflation is to shop around for the best prices. This means comparing prices at different stores and online retailers before making a purchase. You can also use coupons and discounts to save even more money.

Tip 2: Cut back on unnecessary spending.

Another way to cope with rising inflation is to cut back on unnecessary spending. This means taking a close look at your budget and identifying areas where you can save money. For example, you could cut back on eating out, entertainment, or travel.

Tip 3: Consider increasing your income.

If you are struggling to cope with rising inflation, you may want to consider increasing your income. This could involve asking for a raise at work, starting a side hustle, or investing in yourself to improve your skills and qualifications.

Tip 4: Seek professional help if needed.

If you are struggling to cope with rising inflation, don’t be afraid to seek professional help. A financial advisor can help you develop a plan to manage your finances and debt, and a therapist can help you manage the stress of inflation.

Coping with rising inflation can be challenging, but it is possible. By following these tips, you can take steps to protect your finances and improve your well-being.

Transition paragraph from tips section to conclusion section:

The CPI report for February 2024 is a reminder that inflation is a serious problem that is affecting consumers around the world. By understanding the causes of inflation and taking steps to cope with it, you can protect your finances and improve your well-being.

Conclusion

The CPI report for February 2024 is a reminder that inflation is a serious problem that is affecting consumers around the world. The headline CPI increased by 0.5% over the previous month and 6.5% over the past year, while the core CPI increased by 0.4% over the previous month and 5.8% over the past year.

The increase in the CPI is being driven by rising prices for food, energy, and shelter. This is putting a strain on household budgets and making it difficult for consumers to make ends meet.

In the meantime, consumers can take steps to cope with rising inflation by shopping around for the best prices, cutting back on unnecessary spending, and considering increasing their income. If needed, consumers can also seek professional help from a financial advisor or therapist.

Inflation is a complex issue with no easy solutions. However, by understanding the causes of inflation and taking steps to cope with it, consumers can protect their finances and improve their well-being.