US CPI likely trimmed in February due to marked decline in gasoline prices

US CPI for February is expected to have been trimmed by 0.3% due to a marked decline in gasoline prices. Prices at the pump, after seasonal adjustment, is expected to have declined 12.3% in February, the largest drop since January 2015. The total energy gauge, buoyed by stable residential natural gas costs that grew 1.4%, is expected to have dropped by 5.6%. Meanwhile, following a flat reading in January, food prices are expected to have rebounded in February, growing 0.2%.

Excluding the food component and volatile energy, the core CPI has likely strengthened 0.2%, a slight slowdown from January’s reading of 0.3%. Core measure is expected to have been lifted by increases in shelter, while a drag is expected to have been provided by medical care prices.

On an annual basis, the headline CPI is likely to have reached 0.8% in February after posting 1.4% in January. Nevertheless, the core CPI is expected to have remained at the 2.2% level for the second consecutive month.