The latest inflation data from the Labor Department showed that price increases continued at a steady pace in February, though some items saw notable price hikes or declines.
The Bureau of Labor Statistics found that the 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 January’s reading.
Core CPI inflation – a figure which excludes volatile measures of food and energy prices – was up 2.5% in February, also in line with expectations and unchanged from a month ago.
The readings for both headline and core CPI were above the Federal Reserve’s long-run target of 2% annual inflation but well below the 9.1% high recorded in June 2022 amid the pandemic-era inflation surge.
INFLATION HELD STEADY IN FEBRUARY AND REMAINED ABOVE THE FED’S TARGET
Here’s a look at some popular items from the February CPI report that saw notable increases or decreases in prices.
Rising prices
Coffee prices were up 18.4% from a year ago in February. The U.S. imports the majority of its coffee and those imports were subject to higher tariffs for most of 2025 before an exemption was put in place to address affordability concerns.
Lettuce prices rose 15.3% on an annual basis through February, including a 12.2% monthly increase. A confluence of factors has impacted lettuce prices, including a disease affecting some lettuce grown in California, agricultural labor shortages due to immigration enforcement, as well as a seasonal transition between growing regions.
BEEF PRICES SOAR AS AMERICAN FAMILIES PAY STEEP PRICES FOR STEAKS AND BURGERS NATIONWIDE
Beef and veal prices increased 14.4% year over year, and within that category, beef steaks were up 16.3% while ground beef was up 15.2% and beef roasts rose 12.4%. Beef prices have risen as the U.S. cattle inventory is at a 70-year low due to drought and wildfires in key ranching regions, as well as higher overhead costs facing ranchers.
Audio equipment prices rose 13.5% on an annual basis through February. A combination of tariffs, rising raw material costs for inputs like copper and gold, as well as increased demand for components such as chips that are also used in artificial intelligence data centers contributed to the rise.
Utility gas service prices were up 10.9% from a year ago in February, including a 3.1% monthly increase. Natural gas prices were volatile amid geopolitical tensions prior to the outbreak of the Iran war at the end of February, as well as due to increased demand for U.S. natural gas exports to Europe and Asia.
HOW THE IRAN WAR COULD HIT AMERICANS’ GROCERY BILLS
Falling prices
Egg prices plunged 42.1% in February compared with last year, including a 3.8% monthly decline. The decline is occurring as the egg supply chain normalizes after an avian flu outbreak impacted inventory levels in recent years, prompting dramatic price increases.
Smartphone prices fell 13.9% from a year ago in February, in part because the BLS index includes older smartphone models that have been discounted and also accounts for the tech improvements. That means a more capable phone at a higher price may be reflected as a price decline due to the relative capability improvement. Additionally, smartphones were generally exempt from tariffs in 2025, unlike some other electronic devices like audio equipment.
Tax return preparation and accounting fees declined 6.4% over the last year. The decline was driven by the integration of AI into tax software as well as the expansion of the IRS’ Direct File and Free File programs and more simplistic tax forms for self-filers.
WILL TAPPING OIL RESERVES CURB SOARING GAS PRICES?
Gasoline prices were down 5.6% year over year in February, inclusive of a 0.8% increase for the month. The BLS’ data was collected prior to the outbreak of the Iran war, which has pushed oil and gasoline prices significantly higher in recent weeks.
Television prices fell 4.1% in the last year through February, continuing a longstanding deflationary trend in TV prices. The BLS uses a similar model for TVs as it does for smartphones, so improved features or larger TVs can result in a reported decline in prices due to tech and capability improvements.
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