(The Center Square) – Lower energy prices drove down inflation in February, according new federal data released this week.
The U.S. Bureau of Labor Statistics released new data Wednesday showing inflation rose just 0.2% last month, part of a 2.8% rise over the last year. The average annual inflation rate from January’s data was 3%, so overall annual inflation dropped in February.
The decrease was partially driven by a decline in energy prices, a key promise of President Donald Trump’s campaign, though whether it will last remains to be seen.
The BLS energy index decreased 0.2% on average in the last twelve months now that February’s data is released.
“The index for shelter rose 0.3% in February, accounting for nearly half of the monthly all items increase,” BLS said. “The shelter increase was partially offset by a 4% decrease in the index for airline fares and a 1% decline in the index for gasoline. Despite the decrease in the gasoline index, the energy index rose 0.2% over the month as the indexes for electricity and natural gas increased. The index for food also increased in February, rising 0.2% as the index for food away from home increased 0.4%. The food at home index was unchanged over the month.”
Egg prices remain high amid an Avian flu outbreak.
The White House touted the lower gas prices and airline fares, pointing to cutting regulations and opening up domestic energy production. Trump declared a national energy emergency upon taking office.
“Core consumer prices, which is the best measure of inflation, dropped to its lowest level in FOUR years,” White House Press Secretary Karoline Leavitt wrote on X. “This inflation report, much like last week’s jobs report, is far better than the media predicted and the so-called ‘experts’ expected. When will they learn to stop doubting President Trump? As he successfully did in his first term, President Trump is driving down costs through massive deregulation and energy dominance.”
This article was originally published at www.thecentersquare.com
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