Friday, February 22, 2008

Consumer Prices Post Another Gain

Consumers paid more to fill up their gas tanks, buy groceries and go to the hospital in January as prices on a range of items climbed. Inflation was increasing even as the economy was slowing dramatically, a development certain to raise concerns at the Federal Reserve. The Fed has cut interest rates aggressively in the belief that fighting off a threatened recession was more important than worrying about inflationary pressures. Core inflation, which excludes food and energy, rose by 0.3 percent, the biggest jump in seven months. That increase reflected higher prices for medical care, education, clothing, tobacco and airline fares.

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