Consumer inflation up in January; spending slows

Washington

US consumer prices increased in January, with a gauge of underlying inflation posting its largest gain in 12 months, bolstering views that price pressures will accelerate this year.

The Commerce Department on Thursday said that consumer prices as measured by the personal consumption expenditures (PCE) price index, rose 0.4 per cent. That was the biggest increase since September and followed a 0.1 per cent gain in December.