Inside the Consumer Price Index: February 2026

• Medical Care, Housing, and Food & Beverage have each increased more than 100% since 2000, with college tuition surging nearly 200% and daycare costs up almost 160%
• Energy costs (6.3% of expenditures) are distributed across categories rather than tracked separately, with transportation fuel volatility significantly impacting the Transportation category
• Core inflation (excluding food and energy) shows 2.46% annualized growth versus 2.41% headline CPI, but inflation impact varies dramatically by household circumstances, hitting lower-income families and those with high medical, tuition, or childcare costs hardest

Summary: Inside the Consumer Price Index – February 2026

Key Findings

The Consumer Price Index (CPI-U) tracks eight major expenditure categories, with food, shelter, and clothing comprising over 60% of the index. As of February 2026, headline CPI shows an annualized rate of 2.41%, while core CPI (excluding food and energy) stands at 2.46%.

Category Performance Since 2000

Highest inflation areas:

• College Tuition & Fees: Up nearly 200%, though actual costs may be lower due to financial aid not captured in BLS data
• Daycare & Preschool: Up almost 160%, with accelerated growth since late 2022 following pandemic-era grant expirations
• Medical Care and Housing: Both exceeded 100% cumulative growth
• Food and Beverage: Over 100%, largely driven by post-pandemic price spikes

Lowest inflation:

• Apparel: Nearly unchanged since 2000, with periods of deflation and seasonal volatility

Energy Impact

Energy represents 6.297% of total expenditures (weighted December 2025), split between transportation fuels (2.9%) and household energy (3.4%). Unlike other categories, the BLS distributes energy costs across Housing and Transportation rather than tracking it as standalone expenditure.

Market Implications

Since 2000, cumulative CPI has increased 94.2% compared to 87.0% for core CPI. Inflation impacts vary dramatically by household, with low-income families, those on fixed incomes, and households with high expenses in tuition, daycare, transportation, or medical care experiencing disproportionate effects. The disparity between headline and core inflation highlights how excluding food and energy costs understates real consumer financial pressure.