U.S. CPI falls to 6.0% in February, as expected, but core prices still strong

 3/14/2023

The Bureau of Labor Statistics said the consumer price index rose by 0.4% in February, a slowdown from 0.5% in January. The annual rate of inflation fell to 6.0% from 6.4%, and is now down by one-third from its peak over 9% in June last year.

Even so, it remains at three times the Federal Reserve's targeted rate of 2%, and gives the central bank little extra leeway in its battle to tame inflation. 

However, the headline rate was flattered by a fall in energy prices, and by ongoing deflation in the used car market, where prices fell by another 2.8% as the supply chain disruptions of the pandemic faded into the rear view mirror.