Consumer prices jump 0.7% in February, biggest rise since 2009


Share
Posted Online: March 15, 2013, 5:58 pm
Comment on this story | Print this story | Email this story
WASHINGTON — Fueled by the rising cost of gasoline, consumer prices jumped 0.7 percent in February for the biggest increase in more than three years, the Labor Department said Friday.

The sharp rise in consumer costs last month, which exceeded analyst expectations, could stoke inflation concerns as economic growth strengthens.

Prices now have risen 2 percent over the past year, the target the Federal Reserve has set for an acceptable inflation rate. Prices were up 1.6 percent in the previous 12-month period.

If prices were to start rising faster, the Fed would have to consider pulling back on its stimulus efforts out of concern that they were helping trigger higher costs.

Gas prices were the main culprit in February's jump. Prices at the pump were up a seasonally adjusted 9.1 percent, the most since June 2009.

That also was the last time overall consumer prices exceeded February's increase.

So-called core inflation — which excludes volatile energy and food prices — rose a more modest 0.2 percent in February. The figure was in line with analyst expectations and an improvement from the 0.3 percent increase in January.

But core inflation also is up 2 percent year over year.

The jump in gas prices accounted for almost three-quarters of February's increase in overall consumer costs. Food prices were up just 0.1 percent in February.

















 



Local events heading








  Today is Wednesday, April 23, the 113th day of 2014. There are 252 days left in the year.

1864 — 150 years ago: Some persons are negotiating for 80 feet of ground on Illinois Street with a view of erecting four stores thereon. It would serve a better purpose if the money was invested in neat tenement houses.
1889 — 125 years ago: The Central station, car house and stables of the Moline-Rock Island Horse Railway line of the Holmes syndicate, together with 15 cars and 42 head of horses, were destroyed by fire. The loss was at $15,000.
1914 — 100 years ago: Vera Cruz, Mexico, after a day and night of resistance to American forces, gradually ceased opposition. The American forces took complete control of the city.
1939 — 75 years ago: Dr. R. Bruce Collins was reelected for a second term as president of the Lower Rock Island County Tuberculosis Association.
1964 — 50 years ago: Work is scheduled to begin this summer on construction of a new men's residence complex and an addition to the dining facilities at Westerlin Hall at Augustana College.
1989 — 25 years ago: Special Olympics competitors were triple winners at Rock Island High School Saturday. The participants vanquished the rain that fell during the competition, and some won their events; but most important, they triumphed over their own disabilities.




(More History)