Former JP Morgan Chase chief economist Anthony Chan downplays rising oil prices at Varney & Co.
The latest inflation data from the Labor Department showed that inflation continued at a steady pace in February, although some items saw significant price increases or decreases.
The Bureau of Labor Statistics found that consumer price index (CPI) rose 2.4% from a year ago in February, a figure that was in line with the expectations of economists polled by LSEG and unchanged from the January reading.
Core CPI inflation – a figure that excludes variable measures of food and energy prices – rose 2.5% in February, also in line with expectations and unchanged from the previous month.
The readings of both headlines and the core CPI were above the Federal Reserve’s long-term inflation target of 2% per year but below the 9.1% peak recorded in June 2022 amid a spike in inflation during the pandemic.
INFLATION UNSTABLE IN FEBRUARY AND REMAINS ABOVE FED’S TARGET
The BLS reported that inflation rose 2.4% from a year ago, while the core CPI rose 2.5% in February. (Kena Betancur/Bloomberg/Getty Images/Getty Images)
Here’s a look at some notable items from the February CPI report that saw significant increases or decreases in prices.
Rising prices
Coffee prices were up 18.4% from a year ago in February. The US imports most of its coffee and those imports were subject to high tariffs for much of 2025 before exemptions were issued to address affordability concerns.
Lettuce prices rose 15.3% in the year to February, including a monthly increase of 12.2%. A combination of factors has impacted lettuce prices, including a disease affecting lettuce grown in California, agricultural work shortages due to immigration laws, and seasonal changes between growing regions.
MEAT PRICES CONTINUE AS AMERICAN FAMILIES PAY HIGHER PRICES FOR STEAKS AND BURGERS NATIONWIDE.
Coffee prices jumped last year in large part because of costs. (Photos by Carlo Allegri/Reuters/Reuters)
Beef and veal prices rose 14.4% year-over-year, and within that category, beef was up 16.3% while ground beef was up 15.2% and roast beef was up 12.4%. Beef prices increased as the US cattle population is at a 70-year low due to drought and wildfires in key grazing areas, and high costs faced by ranchers.
Sound equipment prices rose 13.5% year-on-year in February. A combination of prices, rising costs of raw materials inputs such as copper and gold, and growing demand for components such as recycled chips in artificial intelligence data centers contributed to the increase.
Utility gas service prices were up 10.9% from a year ago in February, including a monthly increase of 3.1%. Natural gas prices fluctuated amid the country’s tensions before the outbreak of war in Iran at the end of February, as well as due to growing demand for US natural gas exports to Europe and Asia.
HOW A WAR WITH IRAN COULD HIT AMERICANS’ FOOD MONEY
Egg prices are normalizing after an outbreak of bird flu caused price increases in the past few years. (Ronaldo Schmidt/AFP)
Prices are falling
Egg prices fell 42.1% in February compared to last year, including a monthly decline of 3.8%. The drop comes as the egg supply chain normalizes after bird flu outbreaks have impacted inventory levels in recent years, causing dramatic price increases.
Smartphone prices down 13.9% from a year ago in February, in part because the BLS index includes older models of discounted smartphones and accounts for technological advances. That means that a very capable phone at a high price may be seen as a drop in price due to the relative capability improvement. Additionally, smartphones would generally be exempt from the tax in 2025, unlike other electronic devices such as audio equipment.
Tax return Financial preparation and accounting fees decreased by 6.4% last year. The decline was driven by the integration of AI into tax software and the expansion of the IRS’s direct file and free file programs and simpler tax forms for self-filers.
WILL BUYING OIL OVERCOME GAS PRICE INCREASE?
The Iran war has driven up oil and gas prices in the period since the BLS compiled data for its February inflation report. (Giuseppe Cacace/AFP via Getty Images)
Fuel prices they fell 5.6% year-on-year in February, including a 0.8% month-on-month increase. The BLS data was collected before the outbreak of the Iran war, which has sent oil and gasoline prices skyrocketing in recent weeks.
TV set prices fell 4.1% in the year to February, continuing a long-running trend of TV price cuts. BLS uses the same model for TVs as it does for smartphones, so improved features or larger TVs can lead to reported price drops due to improvements in technology and capabilities.
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