US consumer prices have risen broadly as energy prices rebound, pushing petrol higher. The US Labour Department on Tuesday reported that the consumer price index increased 0.2 per cent month over month in February, following three consecutive months of declines including January’s 0.7 per cent drop, the steepest fall since late 2008 amid the financial crisis. Compared with a year ago, CPI was unchanged. In January, the index dipped 0.1 per cent, its first 12 month decline since October 200
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Stripping out volatile food and energy prices, core CPI also rose 0.2 per cent following a 0.1 per cent gain in January.
Energy prices rose 1.0 per cent in February after seven straight declines as crude oil prices stabilised from a rapid slide since June.
Petrol prices jumped 2.4 per cent after an 18.7 per cent plunge in January.
Food prices rose 0.2 per cent after being flat in January, returning to the same gain seen throughout the fourth quarter.
The CPI provides a snapshot of inflation in the world’s largest economy. The Federal Reserve’s preferred inflation measure, the personal consumption expenditures price index, fell 0.2 per cent in January from a year ago.
“Global oil prices have bounced around and the appreciating US dollar will continue to put downward pressure on core prices,” said Ryan Sweet of Moody’s Analytics.
“The February CPI doesn’t increase the odds of the Fed beginning to normalize interest rates in June.”
AFP
