Pricing power starting to emerge as US economy improves

Washington

AN IMPROVING economy may finally allow American companies to charge more, giving the Federal Reserve reason to believe its battle to underpin inflation is starting to pay off.

Consumer prices excluding food and fuel rose in January by the most in more than four years, according to Labor Department figures issued on Friday in Washington. The advance was traced to more than just one or two items, making the increase more striking.

The lowest jobless rate in eight years and signs that wages are starting to pick up are likely prompting firms to test whethe…