Shoppers are seen in a Kroger supermarket in Atlanta on Oct. 14, 2022.
Elijah Nouvelage | AFP | Getty Images
Consumers continued to contend with higher inflation in February, according to new government data.
The consumer price index — an inflation measure that tracks changes in the prices of consumer goods and services over time — rose 3.2% from a year ago and 0.4% in February, according to monthly data released by the Bureau of Labor Statistics.
Inflation is down from its hottest point in 2022, but is still warm, considering the Federal Reserve’s 2% inflation target. While Americans’ optimism about the economy has improved, many still say that price increases have caused financial hardship, a recent Gallup poll round.
February’s monthly increase was mostly due to increases in gasoline and shelter, according to Mark Hamrick, senior economic analyst at Bankrate. Yet food prices overall were flat for the month.
While there has been progress bringing year-over-year headline and core inflation down, there could be some stalling of that progress in the near term, said David Doyle, head of economics at Macquarie, pointing to the spikes in gas and shelter.
“There is more room to fight on the inflation battle,” Doyle said. “And there’s a bit further to go before everyone goes out and declares victory.”
Where inflation was high in February
Certain items have seen double-digit increases in prices year over year, including juices and drinks, up 27.2%, and motor vehicle insurance, with 20.6%.
Drivers also contended increased prices for motor vehicle repair, up 8.5% year over year. Meanwhile, though gas prices were down 4.2% year over year, they were up 4.1% for the month.
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Certain consumer services, such as admissions to sporting events and tax return preparation, were up 11% and 9.8%, respectively.
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