WASHINGTON–In what could contribute to a future Fed rate increase, consumer prices saw their biggest increase in nearly four years during January as households paid more for gasoline and other goods, according to new data from the Labor Department that indicates an uptick in inflation.
The DoL said its Consumer Price Index jumped 0.6% in January after increasing 0.3% in December. The January growth in the CPI was the largest since February 2013. In the 12 months through January, the CPI increased 2.5%, the biggest year-on-year gain since March 2012, the DoL said.
The Consumer Price Index rose 2.1% in the year to December.
The Federal Reserve has consistently stated it has a 2% inflation target. It has also indicated, including in recent testimony before Congress by Chair Janet Yellin, that it might push rates up twice in 2017.