The Price Surprises Hiding in February’s CPI Report

The February Consumer Price Index (CPI) report was released today, showing overall prices rose 2.4% from a year earlier—the same annual pace as January.

But that steady headline number masks significant variation beneath the surface. Even as overall inflation has cooled, price changes across categories are far from uniform, with some falling sharply while others continue to rise.

8 Categories Where Prices Fell Over the Past Year

For consumers weary of continually rising prices, there’s some good news in the February CPI report. While inflation remains elevated compared with the Federal Reserve’s target of 2%, several everyday categories actually cost less now than they did a year ago—and in a few cases, much less.

The following categories recorded notable year-over-year price declines:

• Eggs — Down 42.1% from a year earlier, the steepest annual decline among more than 300 categories tracked by the CPI
• Smartphones — Down 13.9% year over year
• Butter — Down 7.6% from a year earlier
• Sporting events admission — Down 6.9% over the past year
• Tax preparation services — Down 6.4% year over year
• Men’s suits, sport coats, and outerwear — Down 6.1% from a year earlier
• Wireless telephone service — Down 4.3% year over year
• Health insurance — Down 3.6% over the past year

For shoppers keeping a close eye on receipts, these price drops could ease pressure in parts of the household budget.

8 Categories Where Prices Climbed Over the Past Year

The February report also delivered less encouraging news. Several commonly purchased items and essential services are still getting more expensive—in some cases by double digits—adding strain to household budgets even as overall inflation has cooled.

These categories recorded notable year-over-year increases in February:

• Coffee — Up 18.4% from a year earlier
• Steaks (at grocery stores) — Up 16.3% year over year
• Lettuce — Up 15.3% from a year earlier
• Streaming services — Up 15.2% over the past year
• Ground beef — Up 15.2% year over year
• Home health care — Up 15.0% from a year earlier
• Piped gas utility service — Up 10.9% over the past year
• Airline fares — Up 7.1% year over year

For many households, these increases may be harder to absorb than the declines are to celebrate. Staples like coffee and beef, along with essential services, remain meaningfully more expensive than a year ago.

One February Price Drop That Has Turned Into a March Surge

Gasoline was one of the notable price declines in February’s CPI report, down about 7.5% from a year earlier. That drop appeared to offer some relief at the pump, especially with the national average holding below $3 per gallon for 13 straight weeks.

But on March 1, the situation shifted sharply. With the Iran conflict disrupting oil markets, gasoline prices climbed quickly. The national average has risen 60 cents per gallon in just over a week, with every state now above $3 and six states topping $4.