16 March 2007, 16:53  US: February, CPI up 0.4 %

Consumer price inflation in the US rose slightly faster than expected in February, official figures showed today. The Labor Department said overall prices rose 0.4 pct, faster than the 0.3 pct increase economists had expected. Meanwhile core prices, which does not include volatile food and energy prices, rose 0.2 pct in January, in line with expectations but slightly slower than January's 0.3 pct gain, which was the the largest monthly gain in core prices since June. The Labor Department also said that core inflation rose in the past quarter at the fastest seasonally adjusted annualised pace in five months. Core inflation over the past three months has risen at a 2.6 pct seasonally adjusted annualised rate, the fastest three month gain since September, when core inflation had risen at a three month annualised pace of 2.7 pct. Core inflation rose an annualised 2.0 pct in the three months leading up to January and 1.6 pct in the three months leading up to December. Core inflation has risen an unadjusted 2.7 pct in the past twelve months, matching January's unadjusted twelve month gain. Overall inflation has risen an unadjusted 2.4 pct in the year leading up to February. Energy prices rose 0.9 pct in February after falling 1.5 pct in January. Energy prices have risen at an 14.9 pct annual rate over the past three months. Food prices rose 0.8 pct in February after rising 0.7 pct in January. Apparel prices rose 0.5 pct in the month, while transportation prices rose 0.1 pct. Housing prices rose 0.4 pct while medical prices rose 0.5 pct in February. Real average weekly earnings fell 0.3 pct in February, while average hourly earnings rose 0.4 pct in the month.

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