U.S. inflation ticks up slightly in February

The Consumer Price Index (CPI) for All Urban Consumers rose 0.4% after a 0.3% increase in January, both figures seasonally adjusted. Over the past year, inflation has reached 3.2%.

Housing and gasoline costs were the biggest drivers of February's price increase, accounting for over 60% of the overall rise. Energy prices climbed 2.3%, with increases across all its components.  Food prices remained flat overall, with grocery bills unchanged and restaurant prices showing a slight bump.

Excluding volatile food and energy prices, the core inflation rate held steady at 0.4% for the second month in a row.  Shelter costs, airline fares, car insurance, apparel, and recreation all saw price increases in February.  However, personal care products and household furnishings saw some price dips.

Year-over-year inflation ticked slightly higher, with the overall CPI reaching 3.2% compared to 3.1% in January. Core inflation (excluding food and energy) climbed to 3.8% over the past year. Energy prices, however, have softened, dropping 1.9% compared to last February.  Food prices have risen more moderately, with a 2.2% increase over the past year. (ILKHA)