The consumer price index rose by 0.4 percent in February, which is the strongest increase we've seen in that figure in almost a year. Are we in for a bout of inflation, the kind that many financial pundits have been expecting for a while?
Not necessarily. The increase in prices for last month is almost entirely attributable to the rise in gasoline prices, which tend to move independently of other consumer prices. That's why the government strips out food and gas prices for its so-called core inflation measure. That rose just 0.2 percent in February, and has risen 2.9 percent in the previous 12 months. It's down a full point from the 12-month increase as of last September.
Nationwide, the price of gasoline has risen 31 percent in the past month. We continue to get a break compared to the rest of the country in this area: The average price of a gallon of gas is just $3.62 here in New Jersey, as opposed to the national average of $3.81.
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