The Consumer Price Index (CPI), which is the government’s most closely watched barometer for measuring inflation at the consumer level, was flat in February, breaking away from five straight months of 0.2% increases. The month marks the first time since March 2009 when consumer prices did not climb, indicating tame inflation and reinforcing the Fed’s recent statement saying that inflation would remain subdued for "some time."

"Inflation is certainly no imminent threat to the U.S. economy," David Resler, chief economist at Nomura Securities International Inc. in New York, said on Bloomberg. Resler forecasted that prices would remain unchanged "It ties in with the Fed’s statement," he added.

The energy pricing index fell 0.5% in February after rising 2.8% during the prior month. Food prices rose a modest 0.1%.

Striping out volatile food and energy prices, core consumer prices rose 0.1% last month following a decline of 0.1% in January.

“Core inflation continues to be a non-issue in the near-future, so the Fed’s easy monetary policy can continue into the third and fourth quarter of this year without inflation being an issue,” Adam York, an economist at Wells Fargo, said on CNNMoney.com.

Annual inflation advanced 2.1% versus the 12-month rate of 2.6% reported in January. Costs in the past year were again led by energy prices which increased 14.4%.

The core rate was up 1.3% during the same time frame — the smallest gain since February 2004. The inflation level is right within the Federal Reserve’s comfort range of 1%-2%.

February Consumer Price Details

Rising prices include:

• Used car and truck prices rose 0.7% after a 1.5% increase. They are up 14.1% over the past
  year
• New vehicles prices rose 0.1% following a decline of 0.5% in January. They are 3.5% higher on the year.
• Natural gas costs were up 3.9% in February after increasing 3.5% in January
• Food prices moved up 0.1%, although they are down 0.2% over the past 12 months
• Medical care expenses climbed 0.5% for the second straight month

Declining prices include:

• Energy prices declined 0.5% in February after rising 2.8% in January, which was the ninth consecutive increase. Over the past 12 months, energy has risen 14.4%.
• Gasoline prices fell 1.4% after jumping 4.4%. They have soared 36.8% in the past 12 months.
• Shelter costs, which account for about 1/3 of the CPI, were flat in February. They are down 0.4% over the past year.
• Fuel oil prices were down 2.4% following a 6.1% increase. They are up 19.3% on the year.
• Airfares decreased 0.7% after declining 2.5% in January
• The index for electricity declined 0.5% — its third consecutive decrease
• Clothing prices fell 0.7% following a decline of 0.1%
• Dairy and related products decreased 0.1% after jumping 2.1% in January
• Prices for fruits and vegetables decreased 0.1%

To compare how the buying power of the U.S. dollar has changed over time, check out the updated Inflation Calculator.

While consumer prices were flat in February, the annual inflation rate climbed 2.1%, according to the Consumer Price Index, or CPI data. The CPI is the government’s key inflation barometer, measuring inflation at the consumer level.

By comparison, prices advanced 0.2% back in January — for the fifth straight time, and 12-month inflation ending for the month was at 2.6%.

"Inflation is certainly no imminent threat to the U.S. economy," David Resler, chief economist at Nomura Securities International Inc. in New York, said on Bloomberg. Resler correctly anticipated prices would stand pat.

The core CPI, which excludes volatile food and energy prices, rose 0.1% in February after a decline of 0.1% in January. The core rate is up 1.3% in the past year.

With the second set of CPI data released for the year, the U.S. Inflation Calculator is updated, and the buying power of the U.S. dollar can be compared between any dates from 1913 to 2010. Additionally, the following 2010 inflation rate and data pages were updated:

• Historic CPI Data (1913 – 2010)
• Current Inflation Rates (2000 – 2010)
• Historical Inflation Rates (1914 – 2010)
• Rate of Inflation, Annual Averages

A more in depth analysis of February consumer prices, to include price increases and decreases by item, will follow shortly.

The Labor Department’s Producer Price Index (PPI) dropped 0.6 in February — the biggest fall since July, and after soaring 1.4% in January. The PPI measures inflationary pressures before they reach the consumer or, more technically, the wholesale price of goods leaving the factory gate. Many analysts were forecasting a monthly decrease ranging from 0.2% to 0.3%.

"Disinflation is going to be with us for a while," Julia Coronado, a senior U.S. economist at BNP Paribas in New York, said in a Bloomberg Radio interview. "That’s going to allow the Fed to stay on hold for a lot longer than the market is expecting."

Deflation is a persistent decrease in general prices, or the opposite of inflation. Falling prices may seem like good news for consumers, but only to a certain point. If prices mark sustained deflationary levels that strike below the cost to produce goods and services, further economic turmoil can ensue with production cuts, payroll reductions and deepening unemployment.

In a policy statement on Tuesday, the Federal Reserve said that it expected price inflation to remain subdued for some time.

Leading last month’s retreat was a 2.9% reduction in energy costs — the first decline in four months. About 90% of the February drop can be attributed to gasoline prices, which fell 7.4% at the wholesale level. Gasoline prices jumped 11.5% in January. Lower prices for home heating oil and liquefied petroleum gas also were factors in the finished energy goods decrease, according to the Labor Department. The cost of food rose by 0.4%.

Stripping out volatile energy and food costs, core producer prices rose by 0.1% in February after a 0.3% reading in January.

"It remains our belief that soft final demand and copious global spare capacity will keep the core PPI on a benign path," Josh Shapiro, chief U.S. economist at MFR Inc., wrote and was cited on MarketWatch.

Compared with a year earlier, producer prices gained 4.4%, marking the fourth straight increase. 12-month wholesale inflation in January came in at 4.6%. Annual core producer prices rose 1% last month, which was the same level reported in January.

The government’s more closely watched Consumer Price Index (CPI) for February is scheduled to be released on Thursday at 8:30 AM ET. The CPI measures inflation pressures at the consumer level.

However, the price of energy continues to be a burden with increases during the month and year that drove inflation higher over the past 12 months, according to the Labor Department.

The Consumer Price Index (CPI), which is the government’s most closely watched barometer for measuring inflation at the consumer level, rose 0.2% in January for the fifth consecutive month. The figure is lower than the 0.3% increase most analysts were forecasting.

"Despite the extraordinary fiscal and monetary stimulus injected into the economy, many prices are still stagnant or declining," Dan Greenhaus, chief economic strategist for Miller Tabak, wrote in a research note on Friday that was quoted on NYTimes.com. Adding, "The pricing situation still remains fragile."

Leading the increase were higher fuel costs, and a modest up tick in food prices. Excluding volatile food and energy prices, the core CPI fell 0.1% in January — the biggest decline since December 1982.

"This is even more surprising of an outcome when one considers that most other advanced nations have shown some recent inflation strength," said TD Securities economics strategist Ian Pollick in a commentary cited on CBC News. "Having said that, while we don’t expect core prices to remain negative, our view for the remainder of the year is for core prices to trend lower, underscoring the large degree of slack in the U.S. economy," Pollick added.

The same December reading was up by 0.1%.

Annual inflation came in at 2.6%, led by energy prices that jumped 19.1% over the past 12 months. The inflation figure is right within the Federal Reserve’s comfort range of between 1%-2%.

"The broader picture remains one of subdued inflation, and this gives the Fed ample reason to stay on the sidelines until at least very late in the year," Aaron Smith, a senior economist at Moody’s Economy.com in West Chester, Pennsylvania, was quoted on Bloomberg.

Inflation hit 2.7% in December during the prior 12 months.

January Consumer Price Details

Rising prices include:

• Used car and truck prices rose 1.5% and have increased 12.9% over the past
  six months
• Energy prices rose 2.8% in January, its ninth consecutive increase. Over the past 12 months, the
  energy has risen 19.1%.
• Gasoline prices jumped 4.4%, and have soared 51.3% in the past 12 months
• Fuel oil prices increased 6.1%
• Natural gas costs were up 3.5%
• Food prices moved up 0.2%, although they are down 0.4% over the past 12 months
• Medical care expenses climbed 0.5% — the largest increase in 2 years
• Dairy and related products prices jumped 2.1%
• Prices for fruits and vegetables increased 1.3%

Declining prices include:

• Airfares declined 2.5% after increasing for six straights months
• Lodging away from home prices fell 2.1% — hotel and motel rates dropped 2.1%
• Clothing prices fell 0.1%
• New vehicles prices declined 0.5%
• The index for electricity declined 1.1%

To compare how the buying power of the US dollar has changed over time, check out the updated Inflation Calculator.

Consumer prices edged up 0.2% for the month and annual inflation rose 2.6%, according to the Consumer Price Index, or CPI, data released by the Labor Department on Friday. The same December readings came in at 0.2% (revised upward from 0.1%) and 2.7%, respectively.

The CPI is the government’s key inflation barometer, measuring inflation at the consumer level. January’s increase marks the fifth straight month of 0.2% gains. Most analysts were expecting a rise of 0.3%. Either inflation level is tame.

"The broader picture remains one of subdued inflation, and this gives the Fed ample reason to stay on the sidelines until at least very late in the year," Aaron Smith, a senior economist at Moody’s Economy.com in West Chester, Pennsylvania, was quoted on Bloomberg.

Excluding volatile food and energy prices, the core CPI surprisingly fell 0.1% in January versus a 0.1% gain in December, a number analysts were again expecting. The core 12-month reading is up 1.6%.

With the first batch of 2010 CPI figures now available for the year, the US Inflation Calculator is updated, and the buying power of the U.S. dollar can now be compared between any dates from 1913 to 2010. Additionally, the following inflation rate and data pages:

• Historic CPI Data (1913 – 2010)
• US Inflation Rates (2000 – 2010)
• Historical Inflation Rates (1914 – 2010)
• Rate of Inflation, Annual Averages

A more in depth analysis of January consumer prices may be read at U.S. Inflation Rises 2.6%.

The Labor Department’s Producer Price Index (PPI), which measures inflation pressures before they reach the consumer, soared 1.4% in January after a 0.4% increase in December. Forecasts for the month ranged from 0.7% to 0.9%.

Driving prices higher were increased energy and good costs, with respective gains of 5.1% and 1.7%. The same readings in December came in at 0.7% and 0.6%. The biggest contributors to wholesale energy prices were a 11.5% advance in gasoline and 16.2% rise in home heating oil — the latter helped by colder than normal weather. Food prices were up 0.4% compared to 1.3% in December.

The core PPI, which excludes volatile food and energy prices, advanced 0.3% in January after coming in flat for December. Most economists were citing an expected increase of 0.1%. The core number suggests that the Federal Reserve will feel little pressure to increase interest rates based on the PPI.

"While pipeline pressures appear to be mounting, we do not expect them to pass through to finished goods due to high levels of spare capacity," wrote Anika Khan, an economist for Wells Fargo Securities. "As such, the Fed will continue to have the flexibility to keep short-term interest rates low."

Compared with a year earlier, producer prices rose 4.6% — the biggest increase since the start of the recession when the annual level reported in October 2008 was pegged at 5.2%. Annual core producer prices rose 1%. It was unchanged in December.

The government’s Consumer Price Index (CPI) for January is scheduled to be released on Friday at 8:30 AM ET. The CPI measures inflation pressures at the consumer level. Common forecasts are for a 0.3% increase for the month and a core of 0.1%

US consumer prices increased modestly at 0.1% last month, which was down from a 0.4% increase in November and marked the lowest reading since July. Most forecasters were expecting a 0.2% increase.

"Consumer pricing pressures remain very subdued," Russell Price, a senior economist at Ameriprise Financial Inc. in Detroit, was quoted on Bloomberg. "It gives the Fed further leeway to continue keeping rates where they are well through 2010."

The government’s Consumer Price Index, which measures inflation pressures at the consumer level, rose 2.7% on an annual basis in 2009 — the biggest gain since 2007. By comparison, American’s paid just 0.1% more for goods and services in 2008. The contrasting difference was primarily driven by higher energy prices, with gasoline up 53.5% in 2009 after declining 43.1% in 2008.

The so-called core CPI, which excludes the more volatile food and energy items, also increased 0.1% in December. Housing prices, which account for more than a third of the CPI index, remained unchanged and contributed in containing prices.

"Core inflation was held down by housing prices," Mark Vitner, an economists at Wells Fargo Securities, said on CNNMoney. "That’s likely to continue because housing is in over supply."

December’s core CPI was in line with expectations and comes on the heels of an unchanged reading in November. Core inflation rose 1.8% over the past 12 months after increasing 1.7% in November. The inflation figure is right within the Federal Reserve’s comfort range of between 1%-2%.

Consumer prices in December

Rising December prices include:

• Used car and truck prices rose 2.5% compared to a 2.0% increase during the month prior
• Energy prices increased 0.2% after soaring 4.1% in November
• Gasoline prices advanced 0.2% after jumping 6.4% in the month prior
• Fuel oil prices climbed 1.1% following a surge of 9.0%.
• Food prices moved up 0.2%. They were up 0.1% in November.
• Airfares increased for the sixth consecutive month, rising 2.4%
• Medical care prices climbed 0.1%
• Tobacco prices soared 30.1% in 2009
• Dairy and related products prices advanced 0.5% after declining 0.7%
• Lodging away from home prices also increased 0.5% after a drop of 1.5%
• Clothing prices rose 0.4% after a decline of 0.3% in November
• Prices for fruits and vegetables and for other food at home both rose 0.3%

Declining December prices include:

• New vehicles prices declined 0.3% after a 0.6% rise in November
• Natural gas prices plummeted 18.1% after rising 1.5% during the prior month

The index for electricity, which increased 1.4% in November, was unchanged in December.

To compare how the buying power of the US dollar has changed over time, check out the updated Inflation Calculator.

American consumer prices inched 0.1% higher last month. That drove the inflation rate up 2.7% in 2009 from a year ago, according to the Consumer Price Index, or CPI data provided by the Labor Department on Friday. The CPI is the government’s key inflation barometer.

The modest increase in December, which was 0.1% lower than many forecasts, compares to a 0.4% pickup in November. The aforementioned 2.7% annual inflation rate compares to 0.1% inflation in 2008. Higher gasoline prices account for much of the difference.

"The larger increase was primarily due to the energy index, which rose 18.2 percent during 2009 after falling 21.3 percent in 2008. The energy upturn was caused by the gasoline index, which rose 53.5 percent in 2009 after declining 43.1 percent in 2008," the Labor Department’s report states.

Excluding volatile food and energy costs, the core CPI rose 1.8% in the past 12 months versus the 1.7% rise reported in the prior month. 2009’s increase matched 2008. The core CPI in December was also up 0.1%

The US Inflation Calculator is updated with the latest government information, as are the following inflation rate and data pages:

• Historic CPI Data
• US Inflation Rates
• Historical Inflation Rates
• Annual Averages for Rate of Inflation

Additionally, the CPI Release Schedule was updated to reflect 2010 dates for upcoming government reports.

As a note regarding this site’s Inflation Calculator that is located on the home page, current calculations allow comparisons of the buying power of the US dollar between the years 1913 to 2009. When the next CPI data released is made available on Feb. 19, which reports on January consumer prices, the calculator will be updated to also compare prices to 2010.

The latest Labor Department monthly report reveals that the Consumer Price Index, which measures inflation pressures at the consumer level, increased 1.8% from a year ago, and rose 0.4% in November.

The November reading was inline with most analysts’ expectations, and follows a 0.3% gain in October. The cost of living for Americans increased due to several categories, but was led by 4.1% jump in energy prices — the fourth straight monthly increase. Oil prices shot up 9%. Gasoline prices notably rose as well, soaring 6.4% in November after an increase of 1.6% in the month prior.

The so-called core consumer index that excludes the more volatile food and energy items was unchanged in November, marking the first month in ten without an increase. Analysts were expecting a 0.1% increase. The core CPI rose 0.2% in October.

The annual inflation increase of 1.8% compares to the 0.2% drop in the past 12 months that was reported in October. Core inflation increased 1.7% over the past 12 months, matching the annual reading in October. The inflation figure is within the Federal Reserve’s comfort range of between 1%-2%.

Fed policy makers are scheduled to wrap up a two-day meeting later today. No significant changes in policy are expected, with interest rates likely held at 0% to 0.25%.

"I expect more of the same from today’s Fed comments. I think they’ll talk up continued low interest rates and economic healing. I don’t think expect them to change their tune," John Massey, portfolio manager at AIG Sunamerica Asset Management in Jersey City, New Jersey, said on Reuters.

Consumer price details

Rising November prices include:

• New vehicles prices rose 0.6% after a 1.6% rise in October
• Used car and truck prices climbed 2.0% compared to the 3.4% increase during the month prior
• Energy prices soared 4.1% following a 1.5% increase in October
• Gasoline prices jumped 6.4% following an increase of 1.6% from the month prior
• Fuel oil prices surged 9.0%. They rose 6.3% in October.
• Electricity costs were up 1.4% after increasing 0.6% in the two previous months
• Food prices rose 0.1%, matching October
• Airfares rose for the fifth straight month, increasing 3.8% in November
• Natural gas prices rose 1.5% following a 1.9% up tick in October
• Medical care prices climbed 0.3% in November. Prices were up 0.2% in October.
• Prescription drugs climbed by 0.2%.
• Tobacco prices advanced 1%

Declining November prices include:

• Dairy and related products declined 0.7% after increasing 1.0% in October
• Lodging away from home prices fell 1.5% after a rise of rose 0.4%
• Clothing prices declined 0.3% in November after declining 0.4% in the month prior
• Housing prices, which accounts for about a third of the CPI index, decreased 0.2% after unchanged readings from the two prior months

On Tuesday, the Labor Department released the Producer Price Index, which measures prices at the factory door and inflation pressures before they reach the consumer. The PPI showed a 1.8% surge in November. Discounting volatile food and energy prices, the core reading climbed more than expected at 0.5% — the biggest increase since October 2008. Core prices retreated 0.6% in the month prior.

To find out how the buying power of the dollar has changed over time, check out the updated US Inflation Calculator.

The Labor Department’s Consumer Price Index, or "CPI" for short, climbed 0.4% last month following a 0.3% pick up in October. The increase is inline with most expectations. Leading consumer prices higher were energy costs which jumped 4.1%. Energy prices have risen for four consecutive months. Food prices rose only slightly.

Removing food and energy costs, the core CPI remained unchanged after a gain of 0.2% in October. The flat reading is a stark contrast to the 10 straight prior increases. Many economists were forecasting a rise of 0.1%.

On an annual basis, inflation rose by 1.8% as compared to the 0.2% drop in the prior 12 months reported in October.

"Over the last 12 months the index increased 1.8 percent before seasonal adjustment, the first positive 12-month change since February 2009," states the government’s report.

Core prices increased 1.7% over the past 12 months, matching the annual gain in October.

The US Inflation Calculator is updated with the latest government information, as are the following inflation rate and data pages:

• Historic CPI Data
• American Inflation Rates
• Historical US Inflation Rates
• Annual Averages for Rate of Inflation

For more detailed information on November consumer prices, read U.S. Inflation Jumps 1.8% in Past 12 Months.