Tthe Consumer Price Index was unchanged in February, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the index increased 2.1 percent before seasonal adjustment.
Monthly consumer price inflation hasn't been this low since March of last year
The cost of living in the U.S. rose in January less than anticipated and a measure of prices excluding food and fuel fell for the first time since 1982, indicating the recovery is generating little inflation.
The consumer-price index increased 0.2 percent for a fifth straight month, led by higher fuel cost. However, the Labor Department figures revealed today showed that excluding energy and food, the "core index" unexpectedly fell 0.1 percent, reflecting a drop in new-car prices, clothing and shelter.
The big broader picture shows subdued inflation, giving the Fed to keep rates down for now.
The Consumer Price Index rose 0.2 percent in September, which followed a 0.4 percent increase in August.
The slower pace of CPI rise in September showed that inflation will not be a threat as the economy emerges from the worst recession since the Great Depression.
Advertisement