Inflation is still running hot, little surprise to consumers feeling the sting in everyday purchases.
The Consumer Price Index surged 2.8% over the prior year in February, and the month-over-month increase was 0.2% — both measures cooling from January.
Yet categories like food, medical care, and used cars remain elevated.
Here’s what the latest CPI report means for your household:
Grocery price growth was flat in February following a 0.5% jump in January. But even with that slowdown, major food groups are still experiencing price hikes.
The big (old) story: eggs, which are up a whopping 59% from a year ago.
A dozen large Grade A eggs, on average, cost $5.90 in February, up from $4.95 in January and far higher than the $2.99 average of a year ago.
Other breakfast staples like coffee and bacon are also up year over year.
Meat, especially beef, went up: Ground beef increased 2.7% and beef roasts grew 2.8%. According to the St. Louis Fed, a pound of ground beef now averages $5.96 vs. $5.48 in February 2024.
Some food categories saw slower price growth: fruits and vegetables were down 0.5%, and dairy products slowed a full 1% from January.
The cost of eating out grew 0.4% from January and was 3.7% higher than a year ago.
Medical services grew 0.3% from January and are 3% higher than a year ago. That category includes hospital costs, which are 3.6% higher than a year ago in February, and nursing home care, which is up 4.1%. Home healthcare was 5.6% higher than a year ago, the BLS found.
Health insurance rose 3.9% compared to February 2024 and was up 0.3% monthly. Increases in prescription drugs were flat month over month but were 4.6% higher than a year ago.
Price growth for used cars had slowed since last year, but in January surged 2.2% and notched another 0.9% jump last month. New vehicle price growth was flat — a category to keep an eye on with tariffs on foreign cars expected to show up soon in sticker prices.
Auto insurance, which has been soaring for two years, grew just 0.3% month over month but is nearly 11% higher than a year ago.
Three consecutive years of underwriting losses mean insurers have paid out more in claims and expenses than they took in through the premiums we pay — leading to the steep hikes felt today.
There was better news at the gas pump.
The gasoline index slowed by 0.1% in February, a relief from two straight months of steep increases. As of March 12, the national average for gasoline was $3.08 per gallon, according to AAA data. That’s down from an average of $3.15 in January and $3.39 a year ago.
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Inflation remains above the Federal Reserve’s target of 2%. Combined with overall economic uncertainty around tariffs, the Fed is expected to hold interest rates steady during its policy meeting later this month.
