US consumer prices rose 0.2 percent in February

  • US consumer prices rose 0.2 percent in February

US consumer prices rose 0.2 percent in February

Retail inflation jumped to a four-month high of 2.57 per cent in February due to costlier food articles, according to official data released Tuesday.

The Food inflation based on CPI, however, was in negative at 0.66 per cent.

Lower food prices halved India's retail inflation in February 2019 to 2.57 per cent, from 4.44 per cent during the corresponding month of previous year, official data showed on Tuesday.

Economists had predicted consumer price index at 2.43 per cent for February, according to a poll by news agency Reuters.

Fed Chairman Jerome Powell made clear Friday that he and his colleagues are in no hurry to adjust interest rates as growth slows and inflation stays subdued.

Most of the researchers and economists are expecting the US CPI data to print a reading of 0.2%m/m increase for the headline CPI which is due later today at 1230 GMT.

The economy lost momentum at the end of a year ago, a trend that appears to have persisted through early 2019, with manufacturing production plunging and retail sales rising slightly in January after December's sharp drop.

In the 12 months through February, overall prices rose 1.5%, the smallest year-over-year increase since September 2016. In January, the prices declined 4.18 per cent and 13.32 per cent respectively. Core prices were up 2.1% on the year, a pace last matched in October.

Prices of fruits (-4.62 per cent) and vegetables (- 7.69 per cent) continued to decline in February. Owners-equivalent rent, one of the categories created to track rental prices, rose 0.3%, as did rent of primary residence.

Additionally, among the six use-based classification groups, the output of primary goods, which has the highest weightage of 34.04, rose by just 1.4 per cent. There were increases in the prices of motor vehicle insurance, airline fares, household furnishings and personal care products. The cost of communication services was unchanged in February for a third straight month. I think we'll always be moving inflation back to 2 percent with our policy. This article is strictly for informational purposes only. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.