Food, Rent and Energy Prices Remain High in February Inflation Breakdown

Inflation eased again in February thanks to a fall in energy costs, but other prices rose last month and continued to weigh on Americans’ wallets.

The Labor Department said on Tuesday that the consumer price index, a broad measure of the price of basic necessities including petrol, groceries and rent, rose 0.4% in February from the previous month. Prices increased by 6% annually.

It marked the lowest annual inflation rate since September 2021, although inflation is about three times higher than the pre-pandemic average.

“The headline numbers were in line with expectations but you still have sustained high and double digit inflation [growth] in key areas like food and electricity,” said Sean Snaith, an economist at the University of Central Florida.

Here’s a breakdown of where Americans are seeing prices rising the fastest — and where there’s been some respite from higher inflation — as they continue to grapple with the worst sticker shock in a generation:

Eat

Food has been one of Americans’ most vivid reminders of scorching inflation, with food prices rising 0.4% over the month, according to unadjusted numbers. On an annual basis, food prices have risen by 10.2%.

MARKETS MAY UNDERESTIMATE THE RISK OF HIGH INFLATION, BLACKROCK WARNS

Consumers paid more for a range of staple foods in February, with prices for bread (1.2%), beef and veal (0.3%), pork (0.6%), ham (3.8%) , coffee (0.3%) and juice increased (1.4%), fresh fruit (0.8%) including apples (1%), bananas (1.7%) and citrus fruits (1.1%).

But there were also some notable falls: Egg prices – which have recently skyrocketed amid an outbreak of bird flu, a highly contagious virus that often proves fatal to chickens – fell 6.7% in February. /

AMERICANS SEE MORE INFLATION SLOWING NEXT YEAR, NY FED SURVEY SHOWS

To rent

Housing costs, which account for about 40% of the rise in core inflation, rose 0.8% for the month and 8.1% over the past year. Rental costs increased 0.8% for the month and 8.2% on a 12-month basis.

Rising rents are a worrying trend, as higher housing costs have the most immediate and acute impact on household budgets. Another data point that measures how much homeowners would pay in rent-equivalent if they hadn’t bought their home was also up 0.8% from the previous month.

A “For Rent” sign outside an apartment building in the East Village neighborhood of New York, on July 12, 2022. (Gabby Jones/Bloomberg via Getty Images/Getty Images)

However, experts noted that the Department of Labor is lagging behind developments in housing costs and market rents. The latest data included in the February report likely reflects the hot mid-22 real estate market.

“February CPI data was mixed, but the rise in core inflation shows we’re stuck on a plateau for now,” said Robert Frick, corporate economist at Navy Federal Credit Union. “Inflation should be moving sharply lower this spring and summer, especially as lower rental costs feed into the numbers.”

energy

Americans saw another respite last month in the form of lower energy costs, which fell 0.6% in February. This included a 5.2% decline in heating oil. However, gas prices rose in February, rising 1.7% over the month. Compared to the previous year, petrol costs have fallen by around 2%.

INFLATION MAY HIT SOME RETIREERS TWICE

The average price for a gallon of regular gasoline nationwide on Tuesday was $3.46, according to AAA. That’s a significant drop from the record high of $5.01 set in mid-June and down from a year ago when prices were hovering around $4.32.

Electricity costs rose 0.1% in February, up 12.9% from the same time a year ago.

cars

There was some good news for Americans looking to buy a used car in February.

Used car and truck prices, which were a key component of the rise in inflation, fell 1.4% over the month, a 12-month decline of 13.6%.

However, the cost of new cars Inched up over the past month and up 0.3% for the month. New cars are up 6.3% year-on-year.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

travel and transportation

An American Airlines Airbus A321-200 takes off from Los Angeles International Airport March 28, 2018. (Reuters/Mike Blake/Reuters photos)

Airfares rose again in February, with prices up 6.3% month-on-month. According to unadjusted data, tickets are up about 26.5% over the past year.