Consumer prices edge up more than expected
U.S. consumer prices rose last month more than economists had forecast, a sign that inflationary pressures may continue, reported Bloomberg News.
The consumer price index rose 0.2 percent in January, compared with 0.4 percent in December, reported the Labor Department. Prices of goods other than food and energy increased 0.3 percent, the most since last June. Economists had forecast that the Consumer Price Index would rise 0.1 percent and prices of items other than food and energy would increase 0.2 percent.
Medical-care costs had one of the biggest gains, rising 0.8 percent in January, the most since August 1991. Fees for physicians’ services jumped 1.2 percent, the biggest increase since October 1981. Meanwhile, energy prices fell 1.5 percent after a 4.2 percent increase in December.
The Commerce Department announced on Feb. 1 that the personal consumption expenditures index minus food and energy was 2.2 percent higher in December than a year earlier, which is slightly above Federal Reserve Chairman Ben Bernanke’s preferred range of 1 to 2 percent. But he predicts lower prices for oil, commodities and rent will help lower the preferred inflation gauge into his comfort zone.