us february inflation ..., page-3

U.S. Consumer Prices Remained Unchanged in February Update1)

By Shobhana Chandra

March 14 (Bloomberg) -- Consumer prices in the U.S. were unexpectedly unchanged in February as fuel costs dropped, easing concern that inflation would keep accelerating as the economy slows.

The steady reading in the cost of living index followed a 0.4 percent gain in January, the Labor Department said today in Washington. So-called core prices, which exclude food and energy, were also little changed, the first time they didn't increase since November 2006.

Today's report will make it easier for the Federal Reserve to cut interest rates again next week in an effort to limit the slump in economic growth. Still, the cost of fuel has jumped again this month, signaling concern over inflation cannot be completely set aside.

Full article at http://www.bloomberg.com/apps/news?pid=20601087&sid=avLckFjXrWEE&refer=home