Former JP Morgan Chase chief economist Anthony Chan analyzes the rise in oil prices for Varney & Co.
The newest inflation Labor Ministry data showed that price increases continued at a steady pace in February, although some products saw notable price increases or decreases.
The Bureau of Labor Statistics has found that the consumer price index (CPI) rose 2.4% in February from a year ago, a figure that was in line with expectations of economists surveyed by LSEG and unchanged from January figures.
Core CPI inflation – a figure that excludes volatile measures of food and energy prices – rose 2.5% in February, also in line with expectations and unchanged from a month ago.
The figures for both the headline CPI and core CPI were above the Federal Reserve’s long-term target of 2% annual inflation, but well below the high of 9.1% recorded in June 2022 during the pandemic’s inflation surge.
INFLATION STABLE IN FEBRUARY AND REMAINS ABOVE THE FED’S TARGET
The BLS reported that headline inflation rose 2.4% from a year ago, while the core CPI rose 2.5% in February. (Kena Betancur/Bloomberg/Getty Images/Getty Images)
Here’s a look at some popular articles from the February CPI report that show notable price increases or decreases.
Rising prices
Coffee prices rose by 18.4% in February compared to a year ago. The US imports most of its coffee and those imports were subject to higher tariffs for most of 2025 before an exemption was introduced to address affordability concerns.
Lettuce prices rose 15.3% year-on-year through February, including a monthly increase of 12.2%. A confluence of factors has affected lettuce prices, including a disease affecting some lettuce varieties grown in California. agricultural labor shortages due to immigration enforcement, as well as a seasonal transition between growing regions.
BEEF PRICES RISING WHILE AMERICAN FAMILIES QUIETLY PAY PRICES FOR STEAKS AND BURGERS NATIONAL
Coffee prices have risen over the past year largely due to tariffs. (Carlo Allegri/Reuters / Reuters Photos)
Beef and veal prices rose 14.4% year over year, and within that category, steaks rose 16.3%, while ground beef rose 15.2% and roasts rose 12.4%. Beef prices have risen as U.S. livestock inventories are at a 70-year low due to drought and wildfires in key ranching regions, as well as higher overhead costs faced by farmers.
Audio equipment prices rose 13.5% year-on-year through February. A combination of tariffs, rising commodity costs for raw materials such as copper and gold, and increased demand for components such as chips also used in artificial intelligence data centers, have contributed to the increase.
Useful gas service prices rose 10.9% in February from a year ago, including a monthly increase of 3.1%. Natural gas prices have been volatile due to geopolitical tensions leading up to the outbreak of war in Iran in late February, as well as increased demand for U.S. natural gas exports to Europe and Asia.
HOW THE IRAN WAR COULD REACH AMERICANS’ GROCERY BILLS
Egg prices are normalizing after an outbreak of bird flu led to a price increase in recent years. (Ronaldo Schemidt/AFP)
Falling prices
Egg prices fell 42.1% in February compared to last year, including a monthly decline of 3.8%. The decline comes as the egg supply chain normalizes after an outbreak of bird flu affected inventory levels in recent years, leading to dramatic price increases.
Smartphone prices fell 13.9% in February from a year ago, partly because the BLS index includes older smartphone models that have been discounted and also takes into account the technical improvements. That means a phone with more features at a higher price could be reflected as a price drop due to the relative improvement in capabilities. Furthermore, smartphones were generally exempt from tariffs by 2025, unlike some other electronic devices such as audio equipment.
Tax return Preparation and accounting costs have fallen by 6.4% over the past year. The decline was driven by the integration of AI into tax software, the expansion of the IRS’s Direct File and Free File programs, and simpler tax forms for self-filers.
Will Tapping Oil Reserves Curb Rising Gas Prices?
The war in Iran has pushed oil and gas prices higher since the BLS collected data for the February inflation report. (Giuseppe Cacace/AFP via Getty Images)
Gasoline prices fell 5.6% year-over-year in February, including a 0.8% increase for the month. The BLS data was collected before the outbreak of the war in Iran, which has caused oil and gasoline prices to rise significantly in recent weeks.
Television prices fell 4.1% over the year through February, continuing a long-standing deflationary trend in TV prices. The BLS uses a similar model for TVs as it does for smartphones, so improved features or larger TVs could result in a reported price drop due to improvements in technology and capabilities.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
