(MENAFN- Saudi Press Agency) U.S. consumer prices rebounded in February as gasoline costs rose for the first time since June, and there were indications of an increase in underlying inflation pressures, the government reported Tuesday.
The Labor Department said its consumer price index (CPI) increased 0.2 percent last month after falling 0.7 percent in January, the biggest drop in six years. The February gain ended three consecutive months of declines in the index.
Gasoline prices rose 2.4 percent in February, the biggest increase since late 2013, after plunging 18.7 percent in January. Gasoline prices had fallen for seven consecutive months. Food prices increased 0.2 percent, as did shelter costs. The cost of medical care services fell for the first time since 1975.
So-called core CPI - which excludes volatile energy and food costs - rose 0.2 percent last month after a similar gain in January.
In the 12 months ending in February, the overall CPI was unchanged after falling 0.1 percent in January. Over the past 12 months, core CPI rose 1.7 percent, the largest increase since November, and an indication that inflation may be stabilizing.
Federal Reserve (Fed) officials believe the energy-driven weakness in inflation is temporary. The U.S. central bank, which has a 2 percent inflation target, has kept its short-term interest rate near zero since late 2008.
Fed Chair Janet Yellen said last week that policymakers could raise interest rates when they had 'seen further improvement in the labor market' and were 'reasonably confident that inflation will move back to its 2 percent objective over the medium term.'
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