CONSUMER PRICES: US consumer prices rose in February for the second consecutive month, the government said yesterday, adding to evidence that the world's richest economy is growing and that interest rate rises may lie ahead.
The Consumer Price Index (CPI), the most widely used inflation gauge, gained 0.2 per cent last month, in line with Wall Street economists' expectations. But excluding volatile food and energy prices, the CPI rose 0.3 per cent, the Labour Department said, exceeding the 0.2 per cent rise economists had forecast for so-called "core" CPI.
Economists predict that any pick-up in consumer prices will be closely watched by the Federal Reserve, which is widely expected this year to start bumping up its federal funds rate, which stands at a 40-year low of 1.75 per cent.
Most of the sectors that comprise the index rose last month, with housing prices gaining 0.3 per cent and apparel prices up 0.5 per cent. Energy and transportation costs were the only areas posting declines.
However, a separate Labour Department report showed weekly earnings fell last month.
