US core inflation rises in January

| February 17, 2011 | 0 Comments

The Labor Department has today revealed the US Consumer Price Index, the core rate of inflation, rose by 1.6% on an annual basis in January.

However, the rate is still within the central bank’s target of closer to 2%.

On a monthly basis, prices rose by 0.2% - the largest gain since October 2009 - and higher than analysts expectations of a 0.1% gain.

The increase was attributed to rises in the cost of apparel, shelter and airline fares - the latter increasing by 2.2% last month - its fifth consecutive monthly rise.

Several other central banks are battling with stubbornly high inflation, which is being driven by rising food and commodity prices.

In the euro zone, the current rate of inflation is at an annual 2.4% - slightly higher than the target of just below 2%.

However in the UK, consumer price inflation rose to 4% in January - double the Government’s 2% target.

In China, meanwhile, the consumer price index rose 4.9% in January and is well in excess of the 3% target set by the Government.

Finally, India’s inflation rate is the highest among the Group of 20 leading nations, due to soaring food costs.

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