Inflation Hits 40-Year High

CPI-U Increases 0.4% in February

YoY Inflation Rises to 6.4%

The Consumer Price Index for All Urban Consumers (CPI-U) rose by 0.4% in February 2023, following a 0.5% increase in January. This brings the annual inflation rate to 6.4%, the highest since December 1981.

The February increase was driven by higher prices for food, energy, and shelter. Food prices rose by 0.4%, led by increases in the cost of fruits, vegetables, and meat. Energy prices rose by 0.9%, with gasoline prices accounting for most of the increase. Shelter costs rose by 0.4%, with rent and utilities contributing to the increase.

Inflation has been a major concern for policymakers and consumers alike. The Federal Reserve has been raising interest rates in an effort to curb inflation, but the recent data suggests that these efforts may not be having the desired effect.