CPI rise in February keeps Fed on course for rate hikes

Washington

Underlying US inflation increased more than expected in February as rents and medical costs maintained their upward trend, which could keep the Federal Reserve on course to gradually raise interest rates this year.

The Labor Department said on Wednesday its Consumer Price Index, excluding the volatile food and energy components, increased 0.3 per cent after a similar gain in January.

In the 12 months through February, the so-call…