**MNI 5 Things: February CPI As Expected +0.2%, Core +0.2%>

--5 Things We Learned From The February CPI Data

By Kevin Kastner and Holly Stokes

     WASHINGTON (MNI) - The following are the key points from the 

Consumer Price Index data for February released by the Bureau of Labor 

Statistics Tuesday: 

     - February CPI was up 0.2% month/month, right on expectations by 

analysts. However, unrounded it was +0.15005%, almost printing a more 

modest 0.1% gain. Either way, the headline number was below the 0.3% 

whisper number that some market participants were looking for. 

     - Core CPI rose 0.2% (+0.18176% unrounded), as expected, with a 

0.2% gain in owners equivalent rents and a 1.5% gain in apparel prices, 

a second straight solid increase. Analysts have been very accurate in 

forecasting February CPI, and today's results are no different. 

     - The y/y rate for headline CPI rose to +2.2% in February vs +2.1% 

in January, while the y/y rate for core CPI stayed at +1.8%. Concerns 

about inflation ahead of the March FOMC meeting should not be supported 

by this report, so analysts will turn their focus to Wednesday's retail 

sales report. 

     - Lodging away from home prices were flat, medical prices declined 

0.1% on prescription drugs, new vehicle prices fell 0.5%, and used 

vehicle prices fell 0.3%, offsetting the gains seen in owners' 

equivalent rents and apparel. 

     - Energy prices rose 0.1% for February after a 3.0% surge in 

January, with gasoline prices down 0.9% to offset higher prices for 

electricity and gas utilities. CPI excluding only energy was still up 

0.2%. Food prices were flat. 

     ** MNI Washington Bureau: 202-371-2121 ** 

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