Consumer prices rose at faster monthly and annual rates in February, according to inflation data released Tuesday by the Labor Department.
The consumer price index (CPI), a closely watched gauge of inflation, rose 3.2 percent annually in February and 0.4 percent last month. Annual inflation is up slightly from a 3.1 percent rate in January, where economists expected it to stay, according to consensus estimates.
Monthly inflation was up from 0.3 percentage points in January, but in line with economist forecasts for February.
More than 60 percent of February’s monthly increase in prices came from gasoline and shelter, the Bureau of Labor Statistics explained Tuesday.
The bump in inflation comes as President Biden ramps up his efforts to fight high prices and reassure Americans of his grasp on the economy ahead of the November election.
Biden, who is on track for a rematch with former President Trump, has struggled to sell Americans on his economic record. While the U.S. economy enjoys ultra-low unemployment and strong wage growth, years of stubborn inflation have sapped political support for Biden’s economic agenda.
The February inflation data also keeps the Federal Reserve on track to keep interest rates steady at the end of a policy meeting next week. While the Fed projected in December several rate cuts, the strength of the U.S. economy has iced those plans for now.
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