US consumer prices flat in January core inflation picks up

(MENAFN- AFP) US consumer prices were flat in January but core prices rose 0.3 percent in a potential pickup in inflationary pressures, US data showed Friday.

Year-on-year overall prices were up 1.4 percent, the strongest 12-month gain in 15 months, the Labor Department said.

Falling energy prices again held down the consumer price index, and food prices were unchanged.

But stripping out those more volatile items, core CPI surged on the back of higher clothing, housing, auto, transport and health care costs.

Costs for shelter and medical care "were the largest contributors" to the core CPI gain, the department said.

Year-on-year, core prices were up 2.2 percent, in the range of the Federal Reserve's target two percent for tightening monetary policy, though the Fed follows more closely a differently weighted index of prices which remains weaker.