February 14, 2022
The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.8% for February 2022, on a seasonally adjusted basis, according to U.S. Bureau of Labour Statistics (BLS) after a 0.6% increase in January. The all-items index rose 7.9% before seasonal adjustment over the last year. It was noted, “The 12-month increase has been steadily rising and is now the largest since the period ending January 1982.”
The all-items less food and energy index climbed 0.5% in February 2022 compared to January 2022. Notably, “The shelter index was by far the biggest factor in the increase, with a broad set of indexes also contributing, including those for recreation, household furnishings and operations, motor vehicle insurance, personal care, and airline fares.” The all-items less food and energy index increased 6.4%, the largest 12-month change since the period ending August 1982.
The index shelter accounts for 40% of the all-items less food and energy monthly increase, it rose by 0.5% while the recreation index increased 0.7% in February. The index for household furnishings and operations also continued to rise month over month by 0.6%. The index for motor vehicle insurance rose 1.2% and the index for personal care rose 1.2%. Other indexes such as airline fares (+5.2%), medical care (+0.2%) and new vehicles (+0.3%). While the index for used cars and trucks declined month over month by 0.2% and a 1.5% increase in January.
The index for food rose 1.0% in February, after a 0.9% increase in January. It was noted that the food index rose 7.9% year over year “the largest 12-months increase since the period ending July 1981.” The index for food at home increased 1.4%, while the index for food away from home rose 0.4% in February. Over the last 12 months, the index for food at home and food away from home increased 8.6% and 6.8%, respectively.
Furthermore, all six major store food group indexes increased in February, fruits and vegetables (+2.3%), meats, poultry, fish and eggs (+1.2%), cereals and bakery products (+1.1%), dairy and related products (+1.9) and non -alcoholic beverages (+1.6).
The index for energy increased 0.9% in January. However, a 0.8% decrease was recorded in the gasoline index. Meanwhile, the index for natural gas decreased 0.5% whereas the electricity index increased 4.2% in January.
The food away from home 0.4% increase was mainly due to the index for full-service meals which rose 0.6% and the index for limited-service meals increased 0.3%.
The energy index rose 3.5% in February after a 0.9% increase in January. This increase was due to the gasoline index’s sharp increase in February, rising 6.6% after falling 0.8% in January. The energy index rose 25.6% over the past 12 months with all major energy components indexes rising.
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