Official figures show that US consumer prices rose by less than expected in January, easing worries about inflationary pressures.
The Labor Department report also showed that prices excluding food and energy fell for the first time since 1982.
The seasonally adjusted Consumer Price Index rose 0.2% last month, lifted by a spike in energy costs, after rising 0.2% in December. Analysts expected a 0.3% rise. The annual rate of inflation was 2.6%, also below market expectations.
Energy costs soared 2.8% last month, while food prices climbed 0.2%. Stripping out volatile energy and food prices, the closely watched core measure of consumer inflation fell 0.1% in January, the first decline since December 1982.
Core prices were pulled down by declining costs for new vehicles, accommodation and airline fares. High vacancy rates are keeping US rents depressed.
