Consumer Price Index Rises 0.2% in February 2025, Annual Inflation at 2.8%

At A Glance

In February 2025, the CPI-U rose 0.2 percent, led by shelter (+0.3 percent), despite drops in airline fares (-4.0 percent) and gasoline (-1.0 percent). Annual inflation eased to 2.8 percent, with core inflation at 3.1 percent. Food increased 2.6 percent yearly, energy fell 0.2 percent, and shelter rose 4.2 percent.

Washington, D.C. — The U.S. Bureau of Labor Statistics (BLS) reported today that the Consumer Price Index for All Urban Consumers (CPI-U) increased by 0.2 percent in February on a seasonally adjusted basis, following a 0.5 percent rise in January. Over the past 12 months, the all-items index climbed 2.8 percent before seasonal adjustment, down from 3.0 percent in January.

The monthly increase was driven by a 0.3 percent rise in shelter costs, which accounted for nearly half of the gain, though offset by declines in airline fares (-4.0 percent) and gasoline (-1.0 percent). The energy index rose 0.2 percent, with electricity up 1.0 percent and natural gas up 2.5 percent. The food index also increased 0.2 percent, led by a 0.4 percent rise in food away from home, while food at home was unchanged. The core CPI, excluding food and energy, rose 0.2 percent, down from 0.4 percent in January, with increases in medical care, used cars, and apparel.

Year-Over-Year Trends

The all-items index rose 2.8 percent over the 12 months ending February. The core index, excluding food and energy, increased 3.1 percent. Shelter costs rose 4.2 percent annually—the smallest yearly increase since December 2021. Energy fell 0.2 percent, with gasoline down 3.1 percent, though electricity rose 2.5 percent and natural gas 6.0 percent. Food increased 2.6 percent, with egg prices jumping 58.8 percent, driving the meats, poultry, fish, and eggs category up 7.7 percent.

What Are Shelter Costs?

Shelter costs, a major CPI component, measure housing expenses for urban consumers. They include rent paid by tenants, owners’ equivalent rent (the estimated cost homeowners would pay to rent their homes), and lodging away from home (e.g., hotels). In February, shelter rose 0.3 percent, with rent and owners’ equivalent rent each up 0.3 percent, and lodging up 0.2 percent. As a significant portion of the CPI—about one-third—shelter heavily influences overall inflation.