US Egg Price Index Posts 58.8% Year-on-Year Gain

3h 56m agoThanks for joining us today. Here are key takeaways from the February Consumer Price Index inflation report released Wednesday:

Both the headline CPI and the core, excluding food and energy costs, rose by 0.2% compared with January, undershooting the median estimates of 0.3% for each. Shelter costs rose 0.3%, almost half of the monthly CPI gain – but a notably smaller rise than seen in recent years.
Year-on-year inflation came in at 2.8% for the headline, down from 3% in January, and 3.1% for the core – down from 3.3% and the slowest pace since April 2021, when the cost-of-living surge began.
Core inflation was propelled by items including medical care, used vehicles, recreation and apparel, while airline fares and new vehicles declined. The drop in airfares added to signs of a downturn in travel demand flagged by carriers in recent days.
Food inflation slowed on the month, to 0.2% from 0.4% in January, even though the price of eggs jumped by 10.4%. On a year-on-year basis, eggs surged by a staggering 58.8%.
Stock futures added to gains after the softer-than-expected inflation print, with S&P 500 contracts up 1.1% at 9:03 a.m. in New York. Treasury yields initially dropped, then retraced the move as investors highlighted the February figures pre-dated likely tariff hikes that may push up prices. Ian Lyngen at BMO said it was the “first time in the cycle in which such a benign inflation print has been completely discounted in favor of other risks.”

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