Inflation ticked up 3.2% YoY in February, but food prices remained flat

The Consumer Price Index rose 0.4% in February, the highest monthly boost since September, following a 0.3% increase in January, the Bureau of Labor Statistics reported.

Prices increased 3.2% year over year, 0.1% higher than economists predicted and up from last month’s 3.1% rise. Energy costs pushed up inflation, while some consumer products categories cooled.

Food inflation was up 2.2% YoY, but flat month over month for the first time since April 2023, while food away from home inched up just 0.1% from January. Inflation for three of the six major grocery indexes—dairy, fruits and vegetables, and nonalcoholic beverages—cooled in February. After decreasing 0.2% in January, cereals and bakery products rose 0.5%, while prices for meats, poultry, fish, and eggs also rose 0.1%—and eggs jumped 5.8% from January.

Apparel was flat year over year but up 0.6% from last month, and girls’ apparel prices increased 6.8% month over month. Personal care product prices increased 1% monthly and were elevated 4.2% from a year ago; cosmetics rose 1.8% from January.

In a statement released on Tuesday, President Biden said the CPI report “shows we continue to make progress” toward his goal to cut prices. “But as I said in my State of the Union, we have more to do to lower costs and give the middle class a fair shot.”

Government leaders have recently made efforts to address continuing inflation across CPG categories. Several states have worked to lower consumers’ grocery bills by cutting or limiting state and local grocery taxes. And last month, US Senator Bob Casey (D-PA) introduced the Shrinkflation Prevention Act to crack down on CPGs’ practice of charging the same prices for smaller product sizes, calling it a “deceptive practice,” a bill President Biden called out in his State of the Union address last week.