February Inflation Cools to 2.8%, Beating Economist Forecasts

U.S. inflation rose less than expected in February, with the Consumer Price Index (CPI) increasing 0.2% for the month, bringing the annual inflation rate to 2.8%.

Core CPI, which excludes food and energy, also rose 0.2% monthly and 3.1% annually. These figures came in 0.1 percentage point below economist forecasts, providing some relief amid concerns about potential tariff impacts on future inflation.

Housing costs, which make up more than one-third of the CPI calculation, rose 0.3% and accounted for approximately half of February’s overall inflation increase. Food and energy indexes both rose 0.2%, while used vehicle prices jumped 0.9% and apparel increased 0.6%. Some notable price surges included eggs (up 10.4% for the month and 58.8% year-over-year) and motor vehicle insurance (up 0.3% monthly and 11.1% annually). However, airline fares decreased by 4% in February.