February’s CPI Inflation Numbers Put Focus On Home Prices

12-month U.S. inflation for February came in at 6.0% and 5.5% once food and energy are stripped out. That’s broadly in line with expectations but well above the Fed’s 2% goal. On a month on month basis February’s inflation was 0.4% or 0.5% without food and energy. That supports the narrative that inflation is not declining quickly, despite easing from peak levels of summer 2022.

Housing Costs

Part of the reason why inflation remains high is home prices. Shelter costs ran at 0.8% month-on-month for February and 8.1% year-on-year per the CPI’s data. The CPI’s measurement is at odds with other industry data sources due to calculation methodology.