US prices rose 0.2 per cent in January

Feb 17, 2012, 14:51 GMT

Washington - Prices rose 0.2 per cent last month in the United States, according to the monthly government survey issued Friday, below economists' predictions.

The Bureau of Labour Statistics said that the consumer price index was up 2.9 per cent for the 12 months ending in January.

So-called core inflation, excluding volatile food and energy prices, was up 0.2 per cent in January, with the 12-month core rate at 2.3 per cent.

The inflation rate was below Wall Street expectations, according to a Bloomberg News survey of 82 economists. The average January inflation forecast had been 0.3 per cent, within a range of predictions for increases of 0.1 per cent to 0.4 per cent.

The Federal Reserve announced last month that it would keep its benchmark interest rate at 'exceptionally low,' near-zero levels through 2014, amid modest US economic growth and serious risks to the global economy coming from Europe.

Fed chief Ben Bernanke said last week that the central bank foresees continued 'subdued' inflation.

Food prices rose 0.2 per cent in January, pushed by higher restaurant prices even as grocery costs were unchanged. Dairy and meat products were higher, while fresh fruit and vegetables and cereals and baked goods were lower. The 12-month food inflation rate was 4.4 per cent.

Energy prices rose 0.2 per cent in January, led by rising petrol and fuel oil prices but offset by a 2.9-per-cent drop in natural gas prices. The 12-month rate for energy prices was up 6.1 per cent.

Housing costs increased at close to the overall consumer price index.