The Consumer Price Index (CPI), which measures changes in prices paid by consumers for goods and services, was released earlier today for the month of February and showed a 0.4% month-over-month (m/m) increase and +6.0% year-over-year (y/y) vs. the prior month of +0.5% m/m and +6.5% y/y. The February data showed an increase of 0.8% m/m in Shelter expenses, which accounted for 70% of the total CPI increase.
The table below shows m/m percentage changes in CPI indexes across All Items, Food and Energy in addition to the Core CPI, which excludes Food and Energy.
One of the two major focuses of the Federal Open Market Committee (FOMC) is price stability, which is running well above the target range of 2%. Per the Federal Reserve’s February 1 news release, FOMC members reemphasized their commitment to using the tools at their disposal to try and tackle inflation. The next decision regarding fed fund rates will be announced March 21-22. The CPI March summary is scheduled for release on April 12.