The Consumer Price Index (CPI) slowed two-tenths of a percentage point compared to the previous figure, the Department of Labor's Bureau of Labor Statistics reported Wednesday.

The U.S. Consumer Price Index (CPI) stood at 2.8% year-on-year in February, a slowdown of two-tenths of a percentage point compared to the previous figure, the Department of Labor's Bureau of Labor Statistics reported Wednesday.

The underlying index, which excludes food and energy prices due to their greater volatility, closed the second month of 2025 with an increase of 3.1%, two-tenths of a percentage point lower. Food prices rose 2.6% year-on-year, and energy prices were 0.2% cheaper than twelve months earlier.

In monthly readings, the overall index rate advanced 0.2% in February, three-tenths of a percentage point less, while the underlying rate increased by 0.2%, also two-tenths of a percentage point less than in the previous quarter.

Markets are keeping an eye on the February data, as it could provide clues as to the direction of the Federal Reserve's (Fed) monetary policy, although its preferred variable for monitoring the cost of living is the personal consumption expenditures (PCE) price index.

MONETARY POLICY

The Fed's Federal Open Market Committee (FOMC) decided on January 29 to keep interest rates within the target range of 4.25% to 4.50% after having lowered them three times in a row.

The Fed emphasized in its statement that the risks to optimizing employment and prices were "roughly balanced" and that it remained "vigilant" to potential threats from both fronts.