The Consumer Price Index from the Bureau of Labor Statistics last week showed that prices rose in February by 0.1% on a seasonally adjusted basis, the same increase as in January.
Over the last 12 months, the all-items index increased 2.3% before being seasonally adjusted. The all items index increased 2.3% for the 12 months ending February, a smaller increase than the 2.5% figure for the period ending January. The index for all items less food and energy rose 2.4% over the last 12 months. The food index rose 1.8% over the last 12 months, while the energy index increased 2.8% over that period.
SHELTER, FOOD PRICES RISE
Increases in the indices for shelter and for food were the main causes of the increase in the all-items index, more than offsetting a decline in the energy index.
The food index increased 0.4% over the month, with the food at home index rising 0.5%, its largest monthly increase since May 2014.
The index for energy fell 2.0% in February, with all of its major component indices declining.
INDEX W/O FOOD, ENERGY NOT AS STRONG
Take away the indices for food and energy rose 0.2% in February, the same increase as in January. Along with the index for shelter, the indices for apparel, personal care, used cars and trucks, education, and medical care were among those that increased in February.
The food index increased 0.4% in February, after rising 0.2% in January. The index for food at home increased 0.5% in February after a 0.1% increase the prior month.
Five of the six major grocery store food group indices increased in February. The index for dairy and related products rose 1.1%, its largest rise since March 2014.
The index for other food at home rose 0.8%, while the indices for cereals and bakery products and for nonalcoholic beverages both advanced 0.5%.
MEATS, POULTRY INDICES UP
The index for meats, poultry, fish and eggs increased 0.2% in February after being unchanged in January. The only major grocery store food group index not to increase over the month was fruits and vegetables, which was unchanged in February after rising slightly in January.
The index for food away from home rose 0.2% in February following a 0.4% increase in January. The index for limited service meals rose 0.3%, while the index for full service meals increased 0.2% over the month.
The food at home index increased 0.8% over the last 12 months. The index for dairy and related products increased 3.6%, its largest 12-month increase since the period ending January 2015.
The index for meats, poultry, fish, and eggs rose 1.9% over the last 12 months. The remaining groups posted smaller increases, except for the fruits and vegetables index, which fell 1.6% over the period. The index for food away from home rose 3.0% over the last year.
The index for full service meals increased 3.4%, and the index for limited service meals rose 2.7%.
CATTLE, BEEF RECAP
Cash cattle traded in the Plains this week at $105 to $110 per cwt on a live basis, steady to down $3 from last week. Dressed-basis trade has been at $170 to $175, steady to down $5.
The USDA choice cutout Tuesday was up $15.57 per cwt at $239.93, while select was up $12.61 at $229.32. The choice/select spread widened to $10.61 from $7.65 with 206 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Monday was $124.00 per cwt, down $0.67 from the previous day. This compares with Tuesday’s Mar contract settlement of $113.55, up $5.05.