| NEWS ARCHIVES |
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| US consumer prices up in January |
| 20 Feb 2010 |
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US consumer prices edged higher in January but core prices, which strip out food and energy, unexpectedly fell for the first time in 27 years.
The US Labor Department reported that consumer price index or C-P-I rose 0.2 percent last month, led by a surge in gasoline prices.
The CPI increase was a tick below market expectations of a 0.3 percent rise.
It also marks the fifth month in a row the headline inflation reading has held at 0.2 percent.
Compared to the same period a year ago, consumer prices were up 2.6 percent, due to a low base for comparison.
Consumer prices had fallen for five straight months in late 2008 as the global financial crisis accelerated.
Core CPI, excluding food and energy prices, unexpectedly fell 0.1 percent last month from December, the first decline since December 1982.
The Labor Department attributed the decline in core CPI largely to falling prices for shelter, new vehicles and airline fares.
That helped to offset a 0.7 jump in medical care prices, the steepest rise in a year.
Separately, the Labor Department says real average hourly earnings held unchanged in January from December, and fell 0.6 percent from a year ago.
Real average weekly earnings increased 0.3 percent, solely because of a 0.3 percent rise in the average work week. |