US CPI headline inflation decreased by 30 bps to 0.2% MoM in February 2025 from 0.5% MoM in January 2025, falling below market expectations of 0.3% MoM. It was influenced by a 0.3% MoM increase in the shelter index in February 2025, accounting for nearly 50% of the monthly increase across all goods and services but was offset by a 4.0% MoM decrease in airline fares and a 1.0%MoM decline in fuel oil prices. Meanwhile, the energy index rose to 0.2% MoM with electricity and natural gas index increases. The food index also increased by 0.2% MoM in February 2025.Additionally, core inflation, which excludes food and energy items, fell 20 bps to 0.2% MoM in February 2025 from 0.4% MoM in January 2025 (Figure 1). It was primarily due to a 0.8% MoM decrease in transportation service prices.