Jitters as US consumer inflation jumps [View All]

[spinbaby]

WASHINGTON (AFP) - US consumer prices jumped in January, the government reported Wednesday, a week after Federal Reserve chief Ben Bernanke warned that inflation remains the central bank's top concern.

The data spooked economists and Wall Street investors who had hoped that receding inflation could set the stage for a Fed rate cut sometime soon.

According to the Labor Department, the consumer price index advanced 0.2 percent last month compared to December on surging food and medical costs.

The "core" CPI rate, which excludes volatile food and energy prices, went up a larger 0.3 percent in January.

http://news.yahoo.com/s/afp/useconomyinflation;_ylt=Au6I533OlB8du8JlrbrlEaUDW7oF