The February Consumer Price Index (CPI), a key measure of inflation that tracks changes in prices across a broad basket of goods and services, was released today. The report showed prices rose 0.3% from January to February and increased 2.4% year over year.Both figures were similar to January's readings, signaling a relatively constant inflationary environment.
Shelter costs, historically one of the most persistent components of CPI, increased 0.2% in February and remained the largest contributor to headline inflation. Energy prices increased 0.6% month over month, and gasoline rose 0.8% over the same period, reversing a trend of lower fuel costs but remaining mostly in-line with expectations. Importantly, this report does not yet reflect recent changes in energy prices due to the conflict in Iran.
The table below shows m/m percentage changes in CPI indexes which include Core CPI, Food and Energy (Core CPI excludes Food and Energy).
Fed Focus: Inflation Still Above Target
One of the two primary mandates of the Federal Open Market Committee (FOMC) is price stability, with inflation still running above its long-term 2% target. The Committee has reiterated that it will use all available policy tools to bring inflation back toward that objective.
Next Fed Decision
At the upcoming March 17–18, 2 026 meeting, the FOMC is widely expected to leave rates unchanged, with market pricing reflecting a less than 1% probability of a 25-basis-point rate cut. Current expectations are now for only one rate cut in 2026, but that will change as markets receive more data throughout the year.
Data Concerns
Housing data used to calculate changes in shelter prices has been delayed due to government shutdowns. Economists are concerned that without up-to-date data, actual price changes in housing costs might be underestimated.
Disclosures
- The information in this CPI Update has been prepared solely for informative purposes and is not a solicitation, or an offer, to buy, sell or hold any security or a recommendation of the services supplied by any money management organization. It does not purport to be a complete description of the securities, markets or developments referred to in the report. We believe the sources to be reliable, however, the accuracy and completeness of the information is not guaranteed. We, or our officers and directors, may from time to time have a long or short position in the securities mentioned and may sell or buy such securities. Data displayed on this site or printed in such reports may be provided by third party providers. The indexes referenced in the charts presented are unmanaged and do not reflect any transaction costs or management fees. They were chosen to give you a basis of comparison for market segment performance. Actual investment alternatives may invest in some instruments not eligible for inclusion in such an index or model and may be prohibited from investing in some instruments included in such an index or model. This document is intended only for the addressee and may not be reproduced or redistributed. If the reader is not the intended recipient, you are notified that any disclosure, distribution or copying is prohibited. Additional information is available upon request. Please contact your Financial Consultant with any questions.