Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Economic Watch: Inflation Tame, Housing Starts Slip

The U.S. Labor Department reports the Consumer Price index increased 0.1% in February from the month before, the smallest hike since last October, while gaining just 1.1% over the last 12 months.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
March 18, 2014
Economic Watch: Inflation Tame, Housing Starts Slip

 

2 min to read


Inflation appears to be under control while new home starts in the U.S. fell slightly, according to separate reports released Tuesday.

The U.S. Labor Department reports the Consumer Price index increased 0.1% in February from the month before, the smallest hike since last October, while gaining just 1.1% over the last 12 months.

Ad Loading...

The one area that surged was food prices, picking up 0.4% in February, the biggest jump since September 2011, with grocery prices gaining 0.5%. The food index has risen 1.4% over the past year, with grocery prices up 0.9%.

The increase in the February food index accounted for more than half of February’s overall inflation gain, as evidenced by the “core CPI,” which strips out food and energy prices, increasing 0.1% during the month.

“Inflation remain subdued, allowing the Federal Reserve to keep its focus on the uneven nature of the labor market,” said Lindsey Piegza, chief economist for the investment firm Sterne Agee. “Benign price pressures also continue to offer the Fed additional wiggle room surrounding the pace of purchases should the labor market take a significant misstep. With the most recent February employment release reporting a rise of more than 175,000, it is clear the labor market is losing momentum from the start of 2013, but it is not clear that underlying momentum in the labor market has declined drastically, a prerequisite for tapering the taper.”

Ad Loading...

Meantime, the pace of new home starts in the U.S. slipped 0.2% in February from January to an annual rate of 907,000, according to the U.S. Commerce Department.

Single-family housing construction rose 0.3% in February to an annual rate of 583,000 units while multifamily starts edged 2.5% lower to a 312,000-unit pace.

Regionally, combined housing start activity was mixed in the month, posting gains of 34.5% in the Midwest and 7.3% in the South but declined 37.5% in the Northeast and 5.5% in the West.

In contrast, the number of new building permits issued, an indicator of future activity, surged 7.7% to an annual rate of more than 1 million, the highest level since October. Regionally, overall permits rose 6.3% in the Northeast, 9.9% in the South and 17.9% in the West but declined 11.8% in the Midwest.

“While housing construction is in a recent lull due to unusual weather conditions, we expect to see an improvement as the winter weather pattern subsides and builders prepare for the spring selling season,” said National Association of Home Builders Chief Economist David Crowe. “Competitive mortgage rates, affordable home prices and an improving economy all point to a continuing, gradual strengthening of housing activity through the rest of the year.”

 

More Fleet Management

Illustration of a chalkboard with a hand drawing an arrow curving away from a partially erased straight arrow with the words "Embracing Change," the Heavy Duty Trucking Logo and the "cover feature" graphic.
Fleet Managementby Deborah LockridgeAugust 1, 2026

How Innovative Trucking Leaders Turn Change Into an Advantage

As the pace of change accelerates in trucking, the fleets that adapt best have more than the latest technology. They have cultures that embrace improvement.

Read More →
Illustration of past due invoices with red X on top with background of a truck at a loading dock
Fleet ManagementJuly 27, 2026

Freight Broker Bonds Just Got Harder to Get. Here's What That Means for Your Fleet.

When it gets harder for a freight broker to prove they are financially sound, the ones who cannot clear that bar get pushed out of the market. And those are exactly the brokers who used to leave motor carriers holding the bag.

Read More →
Photo of cable bridge crossing Detroit River
Fleet Managementby Deborah LockridgeJuly 23, 2026

Long-Awaited Canadian Border Bridge to Open in Detroit

For trucking, the bridge opening should offer immediate improvements in efficiency and reliability, with new customs facilities, expanded inspection capacity, and direct freeway-to-freeway connections.

Read More →
Ad Loading...
Blue International heavy-duty truck with Aurora driverless truck software coming head-on on an interstate highway
Equipmentby Deborah LockridgeJuly 22, 2026

Aurora Rolls Out Next Generation of Driverless Trucks for Commercial Freight

Aurora's latest autonomous trucks it's rolling out with International feature lower-cost hardware designed for a million miles as the company expands commercial driverless freight operations across the U.S. Sun Belt.

Read More →
American Trucking Associations for-hire tonnage graph
Fleet Managementby Deborah LockridgeJuly 21, 2026

Freight Tonnage Down, Rates up, as Lower Capacity Powers Trucking Recovery

The recovery from the freight recession continues to be driven by reduction in capacity rather than by increased demand.

Read More →
Cyberstop column header depicting images of ChatGPT prompt on a smartphone and shadowy hooded figure
Fleet Managementby Ben WilkensJuly 17, 2026

Think Your Trucking Fleet Isn't Using Much AI? Think Again

Shadow AI — the use of unauthorized artificial intelligence tools at work — is becoming increasingly common, putting sensitive company data at risk. Learn how trucking fleets can protect sensitive data while embracing AI.

Read More →
Ad Loading...
Photo of semi trucks with Panther, ArcBest, and ABF trailers backed up to docks, with ArcBest logo superimposed on top
Fleet Managementby Deborah LockridgeJuly 17, 2026

ArcBest Consolidates Brands, Cuts Workforce

The company will bring three business units under the ArcBest brand, eliminate about 2% of positions, and expects the changes to generate $40 million in annual savings.

Read More →
Cover of ATRI operational costs study with graph clip art and photo of trucks on highway in the background
Fleet Managementby Deborah LockridgeJuly 15, 2026

Trucking Fleets Faced Record Operating Costs During Third Year of Freight Recession

ATRI's annual operational cost report shows carriers trimmed fleets, delayed equipment purchases, and ran older trucks as expenses continued to outpace freight rates.

Read More →
Micheline AI Assistant.

Michelin Adds AI Assistant to MyConnectedFleet Platform

Michelin’s new generative AI tool delivers instant fleet insights, helping managers analyze fuel use, tire maintenance, vehicle status, and operational performance without manually creating reports.

Read More →
Ad Loading...
LytxOne Platform.

LytxOne Platform Now Features AI, Compliance, and Asset Tracking Tools

New enhancements add AI-powered insights, asset tracking, compliance automation, and configurable privacy controls to Lytx's all-in-one fleet management platform.

Read More →