The U.S. Bureau of Labor Statistics released its monthly Consumer Price Index Summary today to a tune of 2.8% inflation, down from 3.1%. The 12-month inflation number is reflective of a 0.2% growth in inflation in February, down from 0.5% in January. The slowed inflation is good news for the U.S. economy, as it has struggled with stability in the last few weeks.
Inflation Breakdown
After two months of a cumulative inflation growth of 0.9%, a 0.2% growth is welcome. Food inflation slowed, which is much needed after rising prices in essentials like eggs. All major categories, except for energy services (electricity and natural gas) dropped. Gasoline and fuel oil saw major drops, as the price actually went down. New vehicles and transportation services were the only other categories that saw price decreases.
What About Eggs?
The U.S. has seen egg prices skyrocket over the last several months due to avian flu scares, and the culling of millions of hens. According to the report, “driven primarily by a 10.4-percent increase in the index for eggs, the index for meats, poultry, fish, and eggs rose 1.6% in February.” This means that eggs were up 10.4% in February, but confusing reporting leaves the American public confused about their prices for March.
Agriculture Secretary Brooke Rollins “warned they would ‘inch back up’ during the Easter season,” as reported by Shane Croucher of Newsweek. However, Secretary Rollins stated that eggs were down around $1.85 in late February, early March. We will have to wait another 30 days or so to see if the price changes are stable for the month. For those wondering, egg prices have risen 58.8% over the last 12 months.
Signs of Relief?
2024 was a rather unstable year in the labor market, and while inflation was down from 2021-2023, there was still much needed relief in the American economy. The last few weeks have seen a struggling market, with headlines dominated by the fall of the stock market, DOGE, and tariffs. Some good news in inflation is appreciated for February, but the market prices still have some fearing the economic future.
