Washington, DC, March 16, 2006--The consumer price index rose 0.1% in February, as falling prices for energy, food and clothing offset higher prices for medical care, shelter and air fares, according to the Labor Department.
The core index, which excludes food and energy, increased 0.1%.
Economists’ estimates matched CPI results, they were extecting an increase of 0.2% in the core index.
The CPI has risen 3.6% in the past 12 months, down from 4% last month. The core rate is up 2.1% year-over-year, the same as in January.
In the past three months, the index has risen at a 2.7% annual rate, while core prices are rising at a 2% pace.
The Fed's preferred gauge of inflation--the core personal consumption expenditure price index--will be released by the Commerce Department on March 31.
In February, energy prices dropped 1.2%. Gasoline prices fell 1%, while natural gas prices sank 4.5% after a record-setting increase in January. Energy prices are up 20.1% in the past 12 months. Food prices rose 0.1%.
Housing prices increased 0.1% as falling utility prices offset gains in lodging away from home, rents and owners' equivalent rents.
Medical care prices rose 0.5%, despite no change in doctors' fees. Hospital services rose 1.1%, the most in nearly four years.
Transportation prices fell 0.2% on lower fuel prices. New vehicle prices rose 0.1%. Airfares climbed 1.2%.
Apparel prices fell 1%, the biggest drop in nearly four years. In the past year, apparel prices are down 1.8%.
