The Consumer Price Index (CPI) rose 0.3% in February and 2.4% year over year, the Bureau of Labor Statistics reported this week.<\/p>\n
Prices inched up from a 0.2% increase in January, but held steady year over year, which aligns with last month\u2019s annual increase and analysts\u2019 estimates. February\u2019s CPI does not include the impact of the US and Israel\u2019s war with Iran, which began on the final day of the month.<\/p>\n
Food prices climbed above overall inflation, with a 0.4% month over month and 3.1% YoY bump. Price increases hit half of the six major grocery indexes\u2014other food at home (+0.8%), fruits and vegetables (+1.4%), and nonalcoholic beverages (+0.8%). A 3.7% month over month jump in candy and chewing gum drove the rise in other food at home prices, while continually elevated lettuce prices helped increase the fruit and vegetable index. Dairy and related products, and cereals and bakery products both declined, while prices of meats, poultry, fish, and eggs, were flat.<\/p>\n
Across other retail categories, the index for apparel rose 1.3%, with jewelry up 7%, thanks to higher gold and silver prices<\/a>. Personal care products ticked up 0.1%.<\/p>\n The war could push consumer prices up. It has already notably impacted gas prices by about 20%, per the Associated Press<\/a>. Higher oil prices taken on by shipping companies will likely be passed along the supply chain, eventually increasing consumer goods prices, including groceries, experts say.<\/p>\n High prices are contributing to consumer pullback and trade-down in spending, hitting retailers\u2019 and brands\u2019 volumes<\/a>. Several have turned to lower prices, like PepsiCo\u2019s price cut on popular snacks like Doritos last month. This week, Target announced it was cutting prices on 3,000 items from 5% to 20% on categories like apparel, home, and essentials to emphasize its new focus on serving \u201cbusy families<\/a>,\u201d Chief Merchandising Officer Cara Sylvester said.<\/p>\n