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    HomeBusinessFebruary CPI Report: What it Means for You

    February CPI Report: What it Means for You

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    • Inflation in February was 0.4%, with prices up 3.2% over the past year.
    • Core inflation, excluding food and energy, was also 0.4% in February and up 3.8% over the past year.
    • Core goods prices fell by 1.5% over the last 6 months due to post-pandemic supply chain improvements.
    • Housing costs, accounting for over a third of the total index, increased by 0.4% in February but are down from their peak, while non-housing services inflation has slowed.

    In today’s blog, we’re going to talk about the latest news on inflation, which is all about how prices for things we buy for our day-to-day activities have been changing.

    You might have heard the term “inflation” before. It’s basically about how the prices of stuff we need to buy go up over time.

    So, let’s start by looking at the numbers. In February, prices went up by a little bit, about 0.4 percent.

    Over the past year, they’ve gone up by 3.2 percent. But there’s another way to look at it, which is by taking the average change over the past six months. That gives us a better idea of what’s been happening recently.

    Over the last six months, prices went up by 3.2 percent overall, and by 3.9 percent if we don’t count the prices of food and energy because they tend to go up and down a lot.

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    Now, let’s break it down even further. We can look at different categories of things we buy to see what’s been driving these changes in prices.

    One category is called “core goods,” which includes stuff like clothes and electronics. During the pandemic, there were a lot of disruptions in how these things were made and shipped, which caused prices to shoot up.

    But now, as things are getting back to normal, prices for core goods have gone down a bit over the past six months.

    Housing

    Then, there’s housing, which is a big part of what we spend our money on. Housing costs have been going up, but not as fast as they were before.

    That’s good news because it means it’s not getting more expensive to have a place to live as quickly as it was.

    Non-Housing Services

    Next, we have non-housing services, which are things like getting your hair cut or going to the doctor.

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    These kinds of services tend to be more sensitive to changes in how much people are getting paid. When wages go up, prices for these services usually go up too.

    But lately, wages haven’t been going up as fast, so prices for non-housing services have been going up more slowly.

    Food and Energy

    Now, let’s talk about food and energy. These are two things that we all need, so changes in their prices can have a big impact on how much money we have to spend on other things.

    Lately, food prices have been going up more slowly than they were before, which is good news for our wallets. And prices for energy, like gas for our cars, have actually been going down a bit, which is also good news.

    So, when we put all of this together, we can see that some things are getting more expensive, like housing and some services, but other things are getting cheaper, like food and energy.

    Overall, though, prices have been going up by a little bit, but not as much as they were before.

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    The government is also working on ways to try to keep prices from going up too fast, so hopefully, we’ll start to see some relief soon.

    Until then, it’s important to keep an eye on prices and make smart choices about how we spend our money.

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    Hritik Jorapure
    Hritik Jorapure
    Hritik Jorapure is a driven MBA graduate with a passion for all things business. With a keen interest in the dynamics of the corporate world, he delves into various aspects of business strategy, finance, and entrepreneurship. As an author at Prime Quill, Hritik covers the latest developments and insights in the realm of business, offering readers valuable perspectives on industry trends, market analysis, and innovative strategies. With a blend of academic knowledge and real-world experience, he brings a fresh and insightful perspective to the forefront of business journalism.

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