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February CPI: Slightly Higher Inflation, Markets Remain Unfazed

February CPI (Consumer Price Index)

No major surprises, slightly higher than expected, the markets have mostly shrugged it off, the futures are still 0.5 to 0.6% higher, and the 10 year is also holding steady at 4.10.

  • The Consumer Price Index advanced 0.4% in February, matching the 0.4% increase expected and slightly accelerating from the 0.3% rise in January (unrevised).
  • On a Y/Y basis, the measure rose 3.2%, more than the 3.1% pace expected and +3.1% in the prior month.
  • Excluding food and energy, core CPI increased 0.4% vs. +0.3% consensus and +0.4% prior. Y/Y, core inflation gained 3.8% vs. +3.7% expected and +3.9% prior.

A 2.3% increase in energy costs helped boost the headline inflation number. Food costs were flat on the month, while shelter rose another 0.4%.