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Consumer Prices in U.S. Rose in February as Gasoline Jumped

News Link  •  Economy - Economics USA

Consumer Prices in U.S. Rose in February as Gasoline Jumped


03-16-2012  •  http://www.bloomberg.com, By Alex Kowalski 
 The cost of living in the U.S. rose in February by the most in 10 months, reflecting a jump in gasoline that failed to spread to other goods and services.
The consumer-price index climbed 0.4 percent, matching the median forecast of economists surveyed by Bloomberg News, after increasing 0.2 percent the prior month, the Labor Department reported today in Washington. The so-called core measure, which excludes more volatile food and energy costs, climbed 0.1 percent, less than projected.
 
The biggest jump in gasoline in more than a year accounted for about 80 percent of the increase in prices last month, leaving households with less money to spend on other goods and services. Federal Reserve policy makers say the advance in fuel costs will be temporary, and most see little risk inflation will flare out of control as unemployment exceeds 8 percent.
 
“There are some worries from the energy prices perspective, but the Fed and most people realize that the increase will probably be transitory,” said Benjamin Reitzes , an economist at BMO Capital Markets in Toronto. “Outside of energy prices, there is not much risk for the consumer.”

 
 

 
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Reported by Robert Lee
Attorney For Freedom
• •
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Tags: living, february, months, reflecting, gasoline, failed, spread, services
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