U.S. consumer prices recorded their biggest increase in nearly four years in January as households paid more for gasoline and other goods, suggesting inflation pressures could be picking up.
The Labor Department said on Wednesday its Consumer Price Index jumped 0.6 percent last month after gaining 0.3 percent in December. January’s increase in the CPI was the largest since February 2013.
In the 12 months through January, the CPI increased 2.5 percent, the biggest year-on-year gain since March 2012.
The CPI rose 2.1 percent in the year to December.
Economists polled by Reuters had forecast the CPI rising 0.3 percent last month and advancing 2.4 percent from a year ago.
Inflation is trending higher as prices for energy goods and other commodities rebound as global demand picks up.
The so-called core CPI, which strips out food and energy costs, rose 0.3 percent last month after increasing 0.2 percent in December. That lifted the year-on-year core CPI increase to 2.3 percent in January from December’s 2.2 percent increase.
The Fed has a 2 percent inflation target and tracks an inflation measure which is currently at 1.7 percent.
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