UPDATE - US consumer inflation annually rises 3.2% in February, monthly gains 0.4%; both above expectations

UPDATES WITH PRESIDENT JOE BIDEN'S COMMENTS

By Ovunc Kutlu

ISTANBUL (AA) - Consumer inflation in the US annually rose 3.2% in February, and monthly gained 0.4%, both coming in above market expectations, according to figures released Tuesday.

The consumer price index (CPI), which measures changes in the prices of goods and services from a consumer's perspective, was expected to show an annual gain of 3.1% after rising 3.1% in January year-on-year.

The figure, however, is a sharp decline from 9.1% annual gain recorded in July 2022, which was the largest since November 1981.

The CPI rose 0.4% in February, compared to the previous month, while expectations for the figure was to show a gain of 0.3%.

The figure showed a monthly increase of 0.3% in January.

"The index for shelter rose in February, as did the index for gasoline. Combined, these two indexes contributed over sixty percent of the monthly increase in the index for all items," the Labor Department's Bureau of Labor Statistics said in a statement.

Core CPI, which excludes volatile food and energy prices, gained 0.4% in February from the previous month, also coming higher than estimates of 0.3%, after rising 0.4% in January.

Annually, core CPI climbed 3.8% in February, also higher than expectation of 3.7%, following a 3.9% year-on-year gain in January.

President Joe Biden said wages are rising faster than prices over the last year and since the coronavirus pandemic.

"Inflation is down two-thirds from its peak and annual core inflation is the lowest since May 2021," he said in a statement released by the White House.

The president noted that inflation is down while unemployment has remained below 4% for the longest stretch in more than 50 years.

"Prices for key household purchases like gas, milk, eggs, and appliances are lower than a year ago," he added.