Gas Prices Fuel 0.7% Consumer Price Increase
The Consumer Price Index (CPI) rose 0.7% on a seasonally adjusted basis for February, according to a Labor Department report (link opens in PDF) released today. After its January flatline, market analysts had estimated a 0.5% increase for February.
The main boost behind the Index comes from a 9.1% spike in gasoline prices, which accounted for nearly 75% of the CPI's increase. Overall, energy prices jumped 5.4% in February. As U.S. refineries pull back on gasoline production, high costs also boosted February's Producer Price Index.
Excluding energy and food costs from the index, analysts' 0.2% estimated bump proved correct. In the last 12 months, consumer prices have gone up 2%. Energy commodities have increased the most (+3.1%), while used cars and trucks have dropped 0.2% in price for the Index's only reduction .
The article Gas Prices Fuel 0.7% Consumer Price Increase originally appeared on Fool.com.You can follow Justin Loiseau on Twitter @TMFJLo and on Motley Fool CAPS @TMFJLo.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.