Consumer prices in the U.S. increased by slightly less than expected in the month of February, according to a highly anticipated report released by the Commerce Department on Friday.
The Commerce Department said consumer prices rose by 0.3 percent in February after climbing by an upwardly revised 0.4 percent in January.
Economists had expected consumer prices to advance by 0.4 percent compared to the 0.3 percent increase originally reported for the previous month.
Meanwhile, the report said the annual rate of consumer price growth ticked up to 2.5 percent in February from 2.4 percent in January, in line with estimates.
Excluding food and energy prices, core consumer prices also rose by 0.3 percent in February after climbing by an upwardly revised 0.5 percent in January. The increase matched expectations.
The annual rate of core consumer price growth slowed to 2.8 percent in February from an upwardly revised 2.9 percent in January.
Economists had expected the pace of core price growth to come in unchanged compared to the 2.8 percent originally reported for the previous month.
The readings on inflation, which are said to be preferred by the Federal Reserve, were included in the Commerce Department’s report on personal income and spending in February.
The report said personal income rose by 0.3 percent in February after jumping by 1.0 percent in January. Economists had expected personal income to climb by 0.4 percent.
Disposable personal income, or personal income less personal current taxes, edged up by 0.2 percent in February after rising by 0.4 percent in January.
The Commerce Department also said personal spending advanced by 0.8 percent in February after inching up by 0.2 percent in January. Economists had expected spending to increase by 0.5 percent.
Excluding price changes, personal spending climbed by 0.4 percent in February after dipping by 0.2 percent in the previous month.
With spending increasing by much more than income, personal saving as a percentage of disposable personal income tumbled to 3.6 percent in February from 4.1 percent in January.
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