Core U.S. Consumer Inflation Rises 0.2%, as Expected

Published on:
12 September 2006 at 10:20 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00004462-core-us-consumer-inflation-rises-02-as-ex/

By Rex Nutting, MarketWatch

U.S. consumer prices increased a larger-than-expected 0.7% in January, led by higher energy, food and housing costs, the Labor Department said Wednesday.

The core consumer price index — which excludes food and energy prices — increased 0.2% last month, as expected.

The increases in the seasonally adjusted CPI should keep the Federal Reserve on course to raise its overnight interest-rate target to 4.75% in late March. Additional rate hikes will likely remain under consideration by Fed policymakers.

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