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US consumer prices report 0.1% soar in February

US consumer prices report 0.1% soar in February

Consumer prices in the United States unexpectedly rose in February on increase in food and accommodation costs, Labor Department data showed on Wednesday day.

The consumer price index (CPI) saw a 0.1 percent surge in February, matching the same pace of January, while analysts predicted no change. The year-on-year reading decelerated to 2.3 percent from a previous of 2.5 percent.   

Core CPI- excluding volatile food and energy prices- showed a 0.2 percent surge, similar to both prior and expected readings, compared to December’s reading of 0.1 percent, while were 2.3% up year over year.

In February, food prices climbed 0.4 percent, while gasoline prices dipped 3.4 percent, the report showed.

While the shortages in the supply chain on the back of the spread of the coronavirus could lead to higher prices in the coming months, the lower demand on some goods and services may push prices significantly down.  

The dollar index traded lower at 96.02, as markets are still pricing another interest rate when the Federal Reserve policymakers convene next week.

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