US consumer inflation eases to 6% in February

ISTANBUL

Annual consumer inflation in the US came in at 6% in February, easing from 6.4% in January, according to figures released Tuesday.

The consumer price index (CPI), which measures changes in the prices of goods and services from a consumer's perspective, came in line with the market estimate.

The figure was the smallest 12-month increase since the period ending September 2021, while it marked a sharp decline from June's 9.1% yearly gain, the largest since November 1981.

The CPI rose 0.4% from the previous month, also in line with the market expectation. The figure for January was unrevised at 0.5%.

"The food index increased 0.4 percent over the month with the food at home index rising 0.3 percent. The energy index decreased 0.6 percent over the month as the natural gas and fuel oil indexes both declined," the Labor Department said in a statement.


Core CPI, which excludes food and energy, gained 0.5% in February from the previous month, also coming in line with the market estimate. January's reading was unrevised at 0.4%.

Annually, core CPI rose 5.5% in February, its smallest 12-month increase since December 2021 and also in line with market expectations, after it rose 5.6% in January year-on-year.

"The energy index increased 5.2 percent for the 12 months ending February, and the food index increased 9.5 percent over the last year," the statement said.

"Today’s report shows annual inflation is down by a third from this summer at a time when the unemployment rate remains near a 50-year low," said President Joe Biden. "I will continue working to lower costs for hard-working Americans so they have a little more breathing room at the end of the month."

Biden noted that more than 12 million jobs have been created since he took office, while the share of working-age adults in jobs, or looking for work, is the highest in 15 years.

Regarding two major US banks going under, the president said: "There will be setbacks along the way in our transition to steady and stable growth. But we face these challenges from a position of strength."

Biden assured Americans on Monday that the US banking system and depositors are “safe” after the sudden collapse of Silicon Valley Bank and Signature Bank.

Both banks' assets have been taken control by the Federal Deposit Insurance Corporation (FDIC) to protect depositors.