Consumer prices rise in February at faster rate than January, report says

Consumer prices on Long Island and in the metropolitan area increased last month at a faster rate than they did in January because of the higher cost of meat, eggs and other grocery items and residential rent.

The federal Bureau of Labor Statistics reported on Wednesday its consumer price index for the 25-county region that includes the Island climbed 4.2% in February compared with a year earlier. That year-over-year rise was faster than January’s 4% but below December 2024’s 4.3%.

The price index is a measure of inflation.

The cost of groceries increased 2.6% last month compared with February 2024. Prices for meat, eggs, poultry and fish were up 9% while nonalcoholic beverages were up 3.8%.

These increases were partially offset by no change in the cost of dairy products and a 2.5% drop in fruits and vegetables, year over year.

Still, consumers waiting for trains at the Long Island Rail Road station in Lynbrook said they are pinching pennies and clipping coupons like never before in response to the prices they see at the supermarket.

Food prices "are out of control," said Phil Gonzales, 35, a construction laborer. "When is this going to end? I feel like most of my paycheck now goes for food for me and my family," said the North Valley Stream resident, who is married with three children.

Betsy Coburn, a retiree from Lynbrook, said she’s using more coupons and looking for bargains in multiple supermarkets.

"I gave up eating eggs and red meat with prices the way they are," said Coburn, 72. "I’d like to think that things will get better, but I’m worried about what the tariffs will do."

The Trump administration’s taxes on imported goods from Canada, Mexico and China — the United States’ top trading partners — and reciprocal taxes on U.S. exports were not reflected in February’s price index, according to John A. Rizzo, an economist and Stony Brook University professor.

"The impacts of the tariffs on cost of living are not yet reflected in these numbers but that is coming soon," he said on Wednesday.

Besides the cost of food, the index shows that residential rents in the metropolitan area were up 5.1% last month compared with February 2024. Medical care rose 0.4% and school tuition/day care was up 4.8%.

The cost of new automobiles and gasoline fell 0.6% and 4.8%, respectively, year over year.

Nationwide, consumer prices climbed 2.8% in February compared with a year earlier. The rate of increase was a bit slower than January’s 3%, the statistics bureau announced.

The rate of growth of prices was faster in the metro area because of energy and housing, according to Bruce Bergman, a bureau economist.

"Energy is one item where we did see prices go down nationally over the year, but where prices rose locally," he told Newsday. In addition, "the rate of annual rent changes has been inching down nationally since last summer when they fell below 5%. In New York, rates have remained stuck in the 5% to 5.5% range since July."

Economists welcomed the national index, saying it would reassure investors and the Federal Reserve’s interest-rate-setting committee.

"This will calm market fears that consumer inflation is meaningfully heating up again and getting away from the Fed’s goal [of 2% price growth, year over year] even before new tariffs on goods imports hit," said Scott Anderson, chief U.S. economist at BMO Capital Markets in Toronto. "It won’t be enough for the Fed to cut rates in March, but leaves open the possibility for more rate cuts later this year."

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.