Gas prices drive inflation up in February

Inflation grew more than expected in February, according to the latest Consumer Price Index from the Bureau of Labor Statistics, thanks to higher prices at the gas pump. There was a bit of good news, though—inflation cooled in other important areas such as food and housing.

In total, prices grew by 3.2% over the 12-month period that ended in February, just a little bit higher than January’s 3.1% reading. The price of gasoline increased by 3.8%, but for the first time since April 2023, food prices did not rise.

“Inflation is like a bobsled track, it slopes down with many twists and turns,” said Sung Won Sohn, a Loyola Marymount University economics and finance professor and chief economist of SS Economics. “The uptick in the inflation rate supports the Federal Reserve’s ‘go-slow’ approach in cutting the interest rate.”