Inflation eased slightly in February, but concerns over an increasingly fragile financial system are complicating policymakers’ already rocky path to slowing the economy.
New data released Tuesday morning by the Bureau of Labor Statistics showed that prices rose 6 percent in February compared with the year before. That’s down notably from June’s peak of 9.1 percent, but muted progress since January’s year-over-year increase of 6.4 percent. Prices rose 0.4 percent in February compared with the month before.
The new reading underscores the reality is that inflation is still way too high and remains a top threat to households, businesses and the broader economy. Higher housing costs weighed heavily on the latest figures, contributing to more than 70 percent of the monthly increase. Food, recreation and household furnishings also rose in price, though natural gas prices and other energy costs fell.
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