CPI Shows Lack of Inflationary Pressure

Marketwatch reports:

U.S. consumer prices were unchanged on a seasonally adjusted basis in February, with falling energy prices offsetting increases in prices of cars, medical care and food, the Labor Department reported Thursday.

In the past year, the CPI has risen 2.1%. The core rate is up 1.3% in the past year, the smallest year-over-year increase in six years.

As can be seen below, the headline has been all transportation costs (i.e. price of gas) flowing through to the consumer.