MNI BRIEF: US Feb Core CPI 0.4% Tad Hotter Than Expected
Three-month core CPI rate rises to 4.3% from the six-month and 12-month rate of 3.8%.
U.S. core CPI rose 0.358% in February, a little firmer than analysts expected, as inflation excluding food and energy accelerated to an annualized rate of 4.3% over the past three months from the six-month and 12-month rate of 3.8%, the Bureau of Labor Statistics said Tuesday. Headline CPI rose 0.442%, bringing the 12-month rate to 3.2%.
The data should keep Federal Reserve officials cautious about signaling imminent rate cuts. (See: MNI INTERVIEW: Hard To Rule Out More Fed Rate Hikes-Acharya)
Shelter costs were the largest driver of the increase in core CPI for the month, the BLS said. Owner's equivalent rent rose 0.44% in February, slowing from 0.56% in January and 0.42% in December, while rent accelerated to 0.46% from 0.36% in January and 0.39% in December. "Supercore" CPI, or core services prices excluding housing, moderated to 0.47% in February from the outsized 0.85% increase in January, but remained high.