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


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Posted Online: March 15, 2013, 5:58 pm
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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.

















 




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  Today is Tuesday, Sept 2, the 245th day of 2014. There are 120 days left in the year.

1864 — 150 years ago: It is estimated that 300,000 people attended the recent Democratic convention in Chicago when Gen. George B. McClellan of New Jersey was nominated as a candidate for president of the United States.
1889 — 125 years ago: Alderman Frank Ill, Winslow Howard and Captain J.M. Montgomery returned from Milwaukee, where they attended the national Grand Army of the Republic encampment.
1914 — 100 years ago: Three members of the Rock Island YMCA accepted positions as physical directors of other associations. Albert Cook went to Kewanee, C.D. Curtis to Canton and Willis Woods to Leavenworth, Kan.
1939 — 75 years ago: Former President Herbert Hoover appealed for national support of President F.D. Roosevelt and Congress in every effort to keep the United States out of war.
1964 — 50 years ago: The Rock Island Junior chamber pf Commerce has received answers to about 65 % of the 600 questionnaires mailed out recently in a "Community Attitude Survey" to analyze sentiments of citizens towards their city's various recreational, educational, and civic service programs.
1989 — 25 years ago: The two thunderstorms passing through the Quad Cities last night and early today left some area residents reaching for their flashlights.






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