This wasn’t a big surprise, with gas prices soaring in the last few weeks. From the Associated Press report:
The Labor Department says the consumer price index rose 0.4 percent in February, the largest increase in 10 months. Gas prices rose 6 percent to account for most of the gain. … Excluding food and energy, so-called “core” prices rose just 0.1 percent. In the past 12 months, consumer prices have risen 2.9 percent, the same year-over-year change as last month.
TIPS investors will get the benefit of the 0.4% increase, a mixed blessing but appreciated when overall interest rates are so low. That’s the reason we buy TIPS, to protect against inflation.
Looks like another good opportunity to build on the bond ladder portion of a portfolio for the middle-aged and trust…