Consumer prices in the United States were unexpectedly unchanged in February as fuel costs dropped, easing concern that inflation would keep accelerating as the economy slows.

The result followed a 0.4 percent rise in prices in January, the Labor Department said. The prices of “core items,” which exclude food and energy, also showed no change for the first time since November 2006.

The report will make it easier for the Federal Reserve to reduce interest rates again on March 18 in an effort to limit the slump in economic growth. Still, the cost of fuel has jumped again this month, signaling that concern over inflation cannot be completely set aside, Bloomberg reported.

Treasury securities extended earlier gains after the report, with the 10-year note yielding 3.46 percent at 8:37 a.m., down 7 basis points from Thursday.

Today’s report showed energy prices dropped 0.5 percent, the most since August, after a 0.7 percent increase in January. The cost of electricity dropped by the most since December 2005. Gasoline and fuel oil prices also fell, while natural gas prices jumped.

Food was one category in which prices continued to rise. That index, which accounts for about a fifth of the CPI, rose 0.4 percent and is up at a 6.5 percent pace so far this year. The biggest increase last month was for dairy products.



Inflation is accelerating this month as fuel prices climb. Crude oil on the New York Mercantile Exchange reached a record $111 a barrel this week. The average cost of regular gasoline climbed to $3.27 per gallon on March 12, according to AAA, also the highest ever.

The Consumer Price index is the government’s broadest gauge of the cost of goods and services. Almost 60 percent of the CPI covers prices that consumers pay for services ranging from medical visits to airline fares and movie tickets.