United States: Inflation falls in February
March 18, 2014
In February, consumer prices increased 0.1% over the previous month in seasonally-adjusted terms, which matched the result registered in January. The small increase, which was in line with market expectations, reflects that higher prices for food were offset by lower prices for energy, and in particular for gasoline. Annual inflation fell from 1.6% in January to 1.1% in February, which marked the lowest level in four months. The monthly core inflation index, which excludes food and energy prices, held at January's 0.1%, matching market expectations. Annual core inflation came in at 1.6% in February (January: 1.6%), while annual average core inflation held at January's 1.7%, the lowest in more than two years. FocusEconomics Consensus Forecast participants expect inflation to average 1.7% in 2014, which is down 0.2 percentage points from last month's forecast. For 2015, the panel expects average inflation to rise to 2.1%.
Author: Carl Kelly, Economist