Consumer Price Index - February 2025

Date: February 2025

Issued by: U.S. Bureau of Labor Statistics

Executive Summary

The Consumer Price Index for All Urban Consumers (CPI-U) increased by 0.2% in February 2025 on a seasonally adjusted basis, following a 0.5% increase in January. Over the past 12 months, the all-items index rose by 2.8% before seasonal adjustment. Shelter costs significantly contributed to the monthly increase, partially offset by declines in airline fares and gasoline prices.

Brief Explanation of the CPI

The CPI is based on prices collected monthly from 75 urban areas, covering around 6,000 housing units and 22,000 retail establishments. Prices include items such as food, clothing, shelter, fuels, transportation, medical services, and other essentials. The Consumer Price Index (CPI) measures changes in prices paid by consumers for goods and services. It reflects spending patterns for two population groups:

• All Urban Consumers (CPI-U): Represents over 90% of the U.S. population and includes a wide range of individuals such as professionals, self-employed, unemployed, retired people, and urban wage earners.
• Urban Wage Earners and Clerical Workers (CPI-W): A subset of the CPI-U, this group represents about 30% of the total U.S. population. These households must have more than half of their income from wage or clerical occupations, with at least one earner employed for 37 weeks in the previous year.

Summary of CPI for February

• Annual Trends

• Over the past 12 months:
• CPI-U increased 2.8%.
• CPI-W increased 2.7%.
• C-CPI-U increased 2.6%.

• CPI-U Monthly Change

• Increased 0.2% in February after rising 0.5% in January.
• Over the last 12 months, the CPI-U rose 2.8%.

• Shelter

• Increased 0.3% in February, accounting for nearly half of the overall increase.
• The owners' equivalent rent and rent indexes both rose 0.3%.
• Lodging away from home increased 0.2%.

• Airline Fares and Gasoline

• Airline fares decreased 4.0% in February.
• The gasoline index declined 1.0% in February.

• Energy

• The energy index increased 0.2% in February.
• Natural gas prices increased 2.5%, and electricity prices rose 1.0%.
• Over the past 12 months, the energy index decreased 0.2%, with gasoline prices falling 3.1% and fuel oil declining 5.1%.

• Food

• The food index increased 0.2% in February.
• The food away from home index rose 0.4%.
• The index for meats, poultry, fish, and eggs rose 1.6%, driven largely by a 10.4% increase in egg prices.
• The food at home index remained unchanged in February.

• All Items Less Food and Energy

• Increased 0.2% in February following a 0.4% increase in January.
• Notable increases included medical care (+0.3%), used cars and trucks (+0.9%), and household furnishings (+0.4%).
• Airline fares and new vehicle prices decreased by 4.0% and 0.1%, respectively.
• Significant annual increases included the shelter index (+4.2%), motor vehicle insurance (+11.1%), and medical care (+2.9%).

Source: https://www.bls.gov/news.release/cpi.nr0.htm