WASHINGTON, March 11 (Xinhua) -- The U.S. consumer price index (CPI) rose 2.4 percent year-on-year in February, according to data released Wednesday by the Bureau of Labor Statistics.
On a month-on-month basis, the CPI increased 0.3 percent, with both the monthly and annual readings broadly in line with economists' forecasts.
The data was collected before the recent surge in oil prices triggered by the war in Iran, and experts said the development is likely to affect inflation readings in the coming months.
After the United States began striking Iran, crude oil spiked on fears of supply disruptions in the region.
Experts warn that a rise in oil prices could push inflation higher in the months ahead, as increases in gasoline costs often drive up consumer goods prices by raising shipping and transportation expenses.
Gary Clyde Hufbauer, a nonresident senior fellow at the Peterson Institute for International Economics, told Xinhua: "The big question is what happens next month with higher energy costs and probably some tariff passthrough to consumers."
Core CPI, which excludes energy and food prices, rose 0.2 percent month-on-month and 2.5 percent year-on-year, in line with economists' forecasts.
At the same time, prices increased a tad for shelter and services, at a time when the costs of rent, home purchases and mortgages are through the roof.
Shelter, the largest component of the CPI, rose 0.2 percent, bringing the year-on-year increase to 3 percent.
Meanwhile, rent edged up just 0.1 percent, the smallest monthly gain since January 2021, though housing costs remain extremely high across the country.
Food prices shot up 0.4 percent month-on-month and 3.1 percent year-on-year. Egg prices dropped 3.8 percent, putting the year-on-year decline at 42.1 percent.
Dean Baker, co-founder of the Center for Economic and Policy Research, told Xinhua: "Food prices rose rapidly in February, which hits people pretty immediately."
"Overall, we are seeing moderate inflation, which was above target, but had no clear trend. The March rate will be much higher because of the war," Baker said. ■
