Government Says Consumer Prices Rose Slightly in February

(CN) — Consumer prices rose at a modest pace in February, another sign that inflation pressures are still being held at bay, the Labor Department reported Tuesday.

According to the government, the consumer price index increased 0.2 percent last month, after a sharp 0.5 percent gain in January.

Core prices — which exclude the volatile food and energy categories — also climbed 0.2 percent.

Overall consumer prices rose 2.2 percent in February from a year earlier, while core prices rose 1.8 percent from a year ago for the third straight month, the report says.

Inflation fears had  intensified this year after a report last month suggested wages were rising more quickly, which can push up prices.

However, the factoring in of additional data showed the gain in hourly wages gains was illusory and the reported gains were overstated.

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