February 14, 2022
The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.8% for February 2022, on a seasonally adjusted basis, according to U.S. Bureau of Labour Statistics (BLS) after a 0.6% increase in January. The all-items index rose 7.9% before seasonal adjustment over the last year. It was noted, “The 12-month increase has been steadily rising and is now the largest since the period ending January 1982.”
The all-items less food and energy index climbed 0.5% in February 2022 compared to January 2022. Notably, “The shelter index was by far the biggest factor in the increase, with a broad set of indexes also contributing, including those for recreation, household furnishings and operations, motor vehicle insurance, personal care, and airline fares.” The all-items less food and energy index increased 6.4%, the largest 12-month change since the period ending August 1982.
The index shelter accounts for 40% of the all-items less food and energy monthly increase, it rose by 0.5% while the recreation index increased 0.7% in February. The index for household furnishings and operations also continued to rise month over month by 0.6%. The index for motor vehicle insurance rose 1.2% and the index for personal care rose 1.2%. Other indexes such as airline fares (+5.2%), medical care (+0.2%) and new vehicles (+0.3%). While the index for used cars and trucks declined month over month by 0.2% and a 1.5% increase in January.
The index for food rose 1.0% in February, after a 0.9% increase in January. It was noted that the food index rose 7.9% year over year “the largest 12-months increase since the period ending July 1981.” The index for food at home increased 1.4%, while the index for food away from home rose 0.4% in February. Over the last 12 months, the index for food at home and food away from home increased 8.6% and 6.8%, respectively.
Furthermore, all six major store food group indexes increased in February, fruits and vegetables (+2.3%), meats, poultry, fish and eggs (+1.2%), cereals and bakery products (+1.1%), dairy and related products (+1.9) and non -alcoholic beverages (+1.6).
The index for energy increased 0.9% in January. However, a 0.8% decrease was recorded in the gasoline index. Meanwhile, the index for natural gas decreased 0.5% whereas the electricity index increased 4.2% in January.
The food away from home 0.4% increase was mainly due to the index for full-service meals which rose 0.6% and the index for limited-service meals increased 0.3%.
The energy index rose 3.5% in February after a 0.9% increase in January. This increase was due to the gasoline index’s sharp increase in February, rising 6.6% after falling 0.8% in January. The energy index rose 25.6% over the past 12 months with all major energy components indexes rising.
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.