Sunday, February 19, 2012

Rising Fuel Prices Push CPI to Highest Gain in Four Months

U.S. consumer prices rose the most in four months in January as the price of gasoline jumped, highlighting a growing concern that higher energy costs could slow the economic recovery.

In a report that might also give the U.S. Federal Reserve some pause over the possibility of easing monetary policy further, the Labor Department said on Friday its Consumer Price Index rose 0.2 percent last month.

The gain was just below analysts' expectations of a 0.3 percent increase.

Stripping out food and energy for the so-called core reading, prices rose 0.2 percent, which was in line with expectations.

However, the report showed the rate of core price increases in the twelve months through January unexpectedly climbed to 2.3 percent. Read More