The Consumer Price Index increased 0.2%, as expected, during February following three consecutive months of holding steady. The expectations figure is from the Action Economics Forecast Survey. The 1.5% y/y increase was the weakest since September 2016. The CPI excluding food & energy nudged 0.1% higher following 0.2% increases during each of the prior five months. A 0.2% rise had been expected. The 2.1% y/y rise was last seen in October.

Energy prices rebounded 0.4% (-5.0% y/y) following declines in four of the prior five months. Fuel oil prices jumped 2.6% (-2.4% y/y) and gasoline prices rebounded 1.5% (-9.1% y/y), after three straight months of roughly 5.0% decline. These gains were offset by declines in natural gas (-2.6% y/y) as well as electricity costs. The latter were unchanged y/y.

Food prices also strengthened 0.4%. That raised the y/y increase to 2.0%, up from a low of 0.3% in 2016. A 0.9% improvement (2.0% y/y) in fruit & vegetable prices led the rise followed by a 0.7% strengthening (1.8% y/y) in cereal & bakery product costs. Meat, poultry & fish prices rose 0.3% (1.0% y/y) while dairy & related product pries also improved 0.3% (0.1% y/y). Egg prices fell 1.4% (-5.9% y/y) while nonalcoholic beverage costs rose 0.7% (2.8% y/y).

Nonenergy services prices improved 0.2% (2.7% y/y) for the fifth straight month. Shelter prices increased 0.3% (3.4% y/y). The owners' equivalent rent of primary residences gained an improved 0.3% (3.3% y/y) and rents of primary residences also increased 0.3% (3.5% y/y). The cost of education & communication gained 0.2% (1.1% y/y) and the price of public transportation also improved 0.2% (-1.8% y/y) after declining for five straight months. Medical care prices were steady (2.4% y/y) after a 0.3% rise while recreation service costs fell 0.2% (+2.2% y/y).

Goods prices excluding food & energy eased 0.2%, but the 0.1% y/y rise compared to price declines from 2013 to 2018. Home furnishings prices rose 0.3% and by a strengthened 1.5% y/y. That included a 6.8% y/y surge in appliance costs. Apparel prices improved 0.3% (-0.8% y/y) but medical care goods prices weakened 1.0% (-1.1% y/y). Recreation product prices fell 0.9% (-1.4% y/y) while education & communication goods were off 0.5% (-4.7% y/y).

Real average hourly earnings increased 0.3% (1.9% y/y).

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.