NYC Consumer Prices Tick Up, Again, In February As Inflation Lingers

NEW YORK CITY — Inflation's grip on New York City eased slightly in February, but still held firm, new data shows.

Consumer prices for the city's metro area rose 0.4 percent last month, compared to 0.8 percent in January, according to the Bureau of Labor Statistics.

The New York City-area's numbers for the month — which matched the national inflation rate — did see persistently high energy costs fall by 2.7 percent.

"The February increase was attributed to rising prices for shelter, new and used motor vehicles, and public transportation that were partly offset by declining prices for energy," a Bureau of Labor Statistics release states.

Shelter prices rose 0.4 percent, while new and used motor vehicles — including those that are rented or leased — rose 2.9 percent, according to the data.

Food prices in and around New York City rose 0.1 percent in February, the data shows.

Overall, energy prices fell 2.7 percent for the month — a dip largely because of a 4.1 percent decline in household energy costs, the data shows.

Prices for the New York City area are still much higher — 6 percent, to be precise — than February 2022, according to the data.

Inflation is still rising nationally much faster than Federal Reserve officials want.

But some economists expect the nation's central bank to halt a year-long spate of interest rate hikes next week. The reason: the collapse of two banks, including one in New York City.

Boosting confidence in the financial system could be the priority for Fed officials. They had been expected to raise the base Fed interest rate by a half-point, which in turn would lead to higher rates on mortgages, auto loans, credit cards and many business loans.

The new inflation data, combined with the bank collapses, likely will halt a substantial hike, economists expect.

“These data support a quarter-point rate hike" at the Fed's meeting next week,” Rubeela Farooqi, chief U.S. economist at High Frequency Economics, said in a research note.

“The decision ultimately will depend not only on the economic data but also financial stability concerns, which could keep the Fed on the sidelines next week.”

The Associated Press contributed to this report.