You are here: Home » International » News » Economy
Business Standard

US consumer prices post largest gain in nearly 4 years

Fed Chair Janet Yellen told lawmakers that waiting too long to remove accommodation would be unwise

Reuters 

Consumer Prices, US
An advertisement is seen inside a Macy's department store in Douglaston, New York, US

US prices recorded their biggest increase in nearly four years in January as households paid more for gasoline and other goods, suggesting pressures could be picking up.

The Labor Department said on Wednesday its Index jumped 0.6 per cent last month after gaining 0.3 per cent in December. January's increase in the was the largest since February 2013. In the 12 months through January, the increased 2.5 per cent, the biggest year-on-year gain since March 2012.

The rose 2.1 per cent in the year to December. Economists polled by Reuters had forecast the rising 0.3 per cent last month and advancing 2.4 per cent from a year ago.

is trending higher as prices for energy goods and other commodities rebound as global demand picks up.

The so-called core CPI, which strips out food and energy costs, rose 0.3 per cent last month after increasing 0.2 per cent in December. That lifted the year-on-year core increase to 2.3 per cent in January from December's 2.2 per cent increase.

The Fed has a two per cent target and tracks an measure which is currently at 1.7 per cent. Gradually firming and a tightening labour market could allow the Fed to raise interest rates at least twice this year.

Fed Chair told lawmakers on Tuesday that "waiting too long to remove accommodation would be unwise."

The US central bank has forecast three rate increases this year. The Fed hiked its overnight interest rate last December by 25 basis points to a range of 0.50 per cent to 0.75 per cent.

Last month, gasoline prices surged 7.8 per cent, accounting for nearly half of the rise in the That followed a 2.4 per cent increase in December. Food prices edged up 0.1 per cent after being unchanged for six straight months. The cost of food consumed at home was unchanged after dropping for eight consecutive months.

Within the core basket, rents increased 0.3 per cent last month after a similar gain in December. Owners' equivalent rent of primary residence gained 0.2 per cent in January after increasing 0.3 per cent the prior month.

The cost of medical care rose 0.2 per cent, with the prices for hospital services and prescription medicine both increasing 0.3 per cent. Motor vehicle prices shot up 0.9 per cent, the largest rise since November 2009.

RECOMMENDED FOR YOU

US consumer prices post largest gain in nearly 4 years

Fed Chair Janet Yellen told lawmakers that waiting too long to remove accommodation would be unwise

Fed Chair Janet Yellen told lawmakers that waiting too long to remove accommodation would be unwise

US prices recorded their biggest increase in nearly four years in January as households paid more for gasoline and other goods, suggesting pressures could be picking up.

The Labor Department said on Wednesday its Index jumped 0.6 per cent last month after gaining 0.3 per cent in December. January's increase in the was the largest since February 2013. In the 12 months through January, the increased 2.5 per cent, the biggest year-on-year gain since March 2012.

The rose 2.1 per cent in the year to December. Economists polled by Reuters had forecast the rising 0.3 per cent last month and advancing 2.4 per cent from a year ago.

is trending higher as prices for energy goods and other commodities rebound as global demand picks up.

The so-called core CPI, which strips out food and energy costs, rose 0.3 per cent last month after increasing 0.2 per cent in December. That lifted the year-on-year core increase to 2.3 per cent in January from December's 2.2 per cent increase.

The Fed has a two per cent target and tracks an measure which is currently at 1.7 per cent. Gradually firming and a tightening labour market could allow the Fed to raise interest rates at least twice this year.

Fed Chair told lawmakers on Tuesday that "waiting too long to remove accommodation would be unwise."

The US central bank has forecast three rate increases this year. The Fed hiked its overnight interest rate last December by 25 basis points to a range of 0.50 per cent to 0.75 per cent.

Last month, gasoline prices surged 7.8 per cent, accounting for nearly half of the rise in the That followed a 2.4 per cent increase in December. Food prices edged up 0.1 per cent after being unchanged for six straight months. The cost of food consumed at home was unchanged after dropping for eight consecutive months.

Within the core basket, rents increased 0.3 per cent last month after a similar gain in December. Owners' equivalent rent of primary residence gained 0.2 per cent in January after increasing 0.3 per cent the prior month.

The cost of medical care rose 0.2 per cent, with the prices for hospital services and prescription medicine both increasing 0.3 per cent. Motor vehicle prices shot up 0.9 per cent, the largest rise since November 2009.

image
Business Standard
177 22

US consumer prices post largest gain in nearly 4 years

Fed Chair Janet Yellen told lawmakers that waiting too long to remove accommodation would be unwise

US prices recorded their biggest increase in nearly four years in January as households paid more for gasoline and other goods, suggesting pressures could be picking up.

The Labor Department said on Wednesday its Index jumped 0.6 per cent last month after gaining 0.3 per cent in December. January's increase in the was the largest since February 2013. In the 12 months through January, the increased 2.5 per cent, the biggest year-on-year gain since March 2012.

The rose 2.1 per cent in the year to December. Economists polled by Reuters had forecast the rising 0.3 per cent last month and advancing 2.4 per cent from a year ago.

is trending higher as prices for energy goods and other commodities rebound as global demand picks up.

The so-called core CPI, which strips out food and energy costs, rose 0.3 per cent last month after increasing 0.2 per cent in December. That lifted the year-on-year core increase to 2.3 per cent in January from December's 2.2 per cent increase.

The Fed has a two per cent target and tracks an measure which is currently at 1.7 per cent. Gradually firming and a tightening labour market could allow the Fed to raise interest rates at least twice this year.

Fed Chair told lawmakers on Tuesday that "waiting too long to remove accommodation would be unwise."

The US central bank has forecast three rate increases this year. The Fed hiked its overnight interest rate last December by 25 basis points to a range of 0.50 per cent to 0.75 per cent.

Last month, gasoline prices surged 7.8 per cent, accounting for nearly half of the rise in the That followed a 2.4 per cent increase in December. Food prices edged up 0.1 per cent after being unchanged for six straight months. The cost of food consumed at home was unchanged after dropping for eight consecutive months.

Within the core basket, rents increased 0.3 per cent last month after a similar gain in December. Owners' equivalent rent of primary residence gained 0.2 per cent in January after increasing 0.3 per cent the prior month.

The cost of medical care rose 0.2 per cent, with the prices for hospital services and prescription medicine both increasing 0.3 per cent. Motor vehicle prices shot up 0.9 per cent, the largest rise since November 2009.

image
Business Standard
177 22