Consumer Prices Rise 2.4% Year-Over-Year in February, Slowest Since 2021
The Consumer Price Index hit 327.460 in February, up 0.27% from January and 2.4% from a year ago. The annual rate continues its descent toward the Fed's 2% target.
The Bureau of Labor Statistics reported the Consumer Price Index for All Urban Consumers (CPI-U) rose to 327.460 in February 2026, a 0.27% increase from January's 326.588.
Year-over-year, consumer prices are up 2.4% from February 2025's reading of 319.679 -- the slowest annual pace since early 2021 and within striking distance of the Federal Reserve's 2% inflation target.
Monthly CPI Readings
| Month | CPI-U | Monthly Change |
|---|---|---|
| February 2026 | 327.460 | +0.27% |
| January 2026 | 326.588 | +0.17% |
| December 2025 | 326.031 | +0.30% |
| November 2025 | 325.063 | +0.25% |
| September 2025 | 324.245 | -- |
Context
The deceleration in consumer prices reinforces expectations that the Federal Reserve may consider further rate cuts later this year. The fed funds rate has held steady at 3.64% since January, but the trend in CPI data suggests inflationary pressures continue to moderate.
The monthly gain of 0.27% was slightly above January's 0.17% increase but below December's 0.30% rise, consistent with the pattern of gradual disinflation rather than deflation.