The US consumer price index (CPI) rose 0.3% month-over-month in February, up from a 0.2% increase in January and in line with market expectations. Energy was a key driver: fuel oil prices jumped 11.1% after falling 5.7% in January, while gasoline prices rose 0.8% following a 3.2% decline. As a result, overall energy costs increased 0.6%. Energy prices are expected to rise further in March, as the war in Iran has pushed energy commodity prices sharply higher.
Food costs also accelerated, increasing 0.4% in February compared with 0.2% in January. This reflected higher prices both for food at home (0.4% vs. 0.2%) and food away from home (0.3% vs. 0.1%).
Core CPI, which excludes food and energy, rose 0.2% in February, easing from a five-month high of 0.3% in January. A 0.6% increase in medical care services (vs. 0.3% previously) helped support core prices, partly offsetting further declines in used cars and trucks, where prices fell 0.4% after a 1.8% drop in January.
