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Inflation remains under control

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Americans saw the biggest increase in consumer prices in 10 months in February as the cost of gasoline spiked, Reuters reported, but there was little sign that underlying inflation pressures were building up.

The Labor Department said today that its Consumer Price Index (CPI) increased 0.4 percent after advancing 0.2 percent in January. Gasoline accounted for more than 80 percent of the rise in consumer prices last month, the department said.

Outside the volatile food and energy category, inflation pressures were generally contained. Core CPI edged up 0.1 percent after gaining 0.2 percent in January.

“The message here is we continue to have the complete absence of price pressures given the slack in the economy,” said Anthony Karydakis, chief U.S. economist at Commerzbank in New York. “Looking ahead, the upward pressure on gasoline we have seen in March has set the stage for another strong rise in headline inflation.”