Price inflation for both goods & services moderated last month. The Consumer Price Index gained 0.2% (2.2% y/y) in February following a 0.5% January rise. The index excluding food and energy prices increased 0.2% (1.8% y/y) after a 0.3% gain. Both of the latest readings matched consensus expectations in the Action Economics Forecast Survey.

The three-month annualized rate of increase in the total CPI picked up to 3.6%, while the three-month gain in the core price index accelerated to 3.1%.

Energy product price inflation moderated to 0.1% (5.7% y/y) from 3.0% in January as gasoline prices fell 0.9% (+12.5% y/y) after a 5.7% rise. Fuel oil prices declined 3.6% (+20.7% y/y) after a 9.5% gain. Other energy prices, however, firmed. Electricity prices rose 0.4% (2.2% y/y) after a 0.2% decline, while natural gas costs jumped 4.7% (3.8% y/y) following a 2.6% shortfall.

Food prices were fairly stable (+1.4% y/y) following two months of 0.2% increase. Fruit & vegetable prices fell 0.5% (+2.1% y/y) and reversed January's rise. Dairy product prices eased 0.3% (-1.9% y/y) and have been falling since late in 2014. Prices for meats, poultry & fish slipped 0.2% (+1.7% y/y) for the second straight month. Cereal & bakery product prices were off 0.1% (-0.2% y/y) following a 0.3% rise.

Prices for goods excluding food & energy ticked 0.1% higher (-0.5% y/y) after strengthening 0.4%. The latest rise occurred despite a 1.5% drop (-3.1% y/y) in appliance prices. Furniture & bedding prices rose, however, by 0.2% (-1.0% y/y) after a 0.4% rise. Apparel prices strengthened 1.5% (0.4% y/y) following a 1.7% jump. New vehicle prices declined 0.5% (-1.5% y/y) after a 0.1% dip, and used vehicle prices fell 0.3% (-0.1% y/y) after a 0.4% rise. Education & communication product prices fell 0.5% (-3.0% y/y) after a 0.8% gain.

Nonenergy services prices increased 0.2% (2.6% y/y) after two months of 0.3% improvement. Shelter prices rose 0.2% (3.1% y/y) for a second month as the owners equivalent rent of primary residences increased 0.2% (3.2% y/y), the weakest rise in three months. Medical care prices held fairly steady (1.8% y/y) following a 0.6% jump. Public transportation prices posted a 0.6% increase (-2.0% y/y) following three straight months of decline. Recreation prices improved 0.1% (2.5% y/y) for a second consecutive month. Education & communication services prices eased 0.2% (-1.7% y/y) after little change.

The consumer price data can be found in Haver's USECON database with additional detail in CPIDATA. The Action Economics survey figure is in the AS1REPNA database.