- ‘Pocket drones’: U.S. Army developing tiny surveillance tools for the next big war
- Belgian cafe posts sign: Dogs allowed, but Jews stay out
- Gen. Dempsey: Pentagon studying Russian readiness plans not viewed ‘for 20 years’
- John McCain: Botched, two-hour execution of murderer is ‘torture’
- House GOP ready to move border bill
- Bomb squad called after live WWII artillery washes on Cape Cod beach
- HAYDEN: Intelligence, evidence and the case against Russia
- Ohio university quiz implies atheists are naturally smarter than Christians
- Rep. Henry Cuellar on border crisis: ‘Playing defense on the one-yard line’
- Activists vow to occupy fast-food restaurants to get higher pay
Consumers paid more for most goods in Jan.
Question of the Day
WASHINGTON (AP) — Consumers paid more in January for everything from food and gas to airline tickets and clothing. The price increases reflect creeping but still-modest inflation.
The Consumer Price Index rose 0.4 percent last month, matching December’s increase, the Labor Department said Thursday. Over the past year, the index has risen 1.6 percent.
Core prices, which exclude volatile food and energy costs, rose 0.2 percent. That’s the largest monthly increase in more than a year. Over the past 12 months, core prices have increased 1 percent. This is more than December’s 0.8 percent annual pace, but it remains well below the Federal Reserve’s comfort zone for inflation of between 1.5 percent and 2 percent.
Food prices climbed 0.5 percent in January, the most in more than two years. Still, food costs in the United States are still tame compared with the raging inflation in many developing countries. Those countries are more vulnerable to steep rises in the prices of corn, wheat, coffee and other commodities.
Other reports Thursday showed:
• More people are applying for unemployment benefits. Applications rose last week to a seasonally adjusted 410,000, the Labor Department said. The increase follows a week when applications fell to their lowest level in nearly three years, but that decline was due partly to snowstorms that closed some government offices and kept people from applying for benefits.
• Fewer homeowners are falling behind on their mortgages. The Mortgage Bankers Association said 8.2 percent of homeowners missed at least one mortgage payment in the October-December quarter. That’s down from 9.1 percent in the previous quarter and a high of more than 10 percent in the January-March quarter, but foreclosures are still rising.
• The average rate on a 30-year fixed mortgage dipped to 5 percent this week from 5.05 percent, according to Freddie Mac. The average rate reached a 40-year low of 4.17 percent in November.
• A private research group’s gauge of future economic activity rose a slight 0.1 percent in January, much less than in recent months. Still, the rise in the Conference Board’s index of leading economic indicators was the seventh straight monthly advance.
The report on consumer prices showed that some companies are trying to pass on higher prices for oil, cotton and agricultural products. In January, a measure of wholesale inflation rose at the fastest pace in more than two years.
But high unemployment and weak wage increases are limiting the ability of many retailers to raise prices.
“With the unemployment rate still at 9 percent, there will be plenty of downward pressure on underlying prices, and so we don’t expect core inflation to trend upwards,” said Paul Ashworth, an economist at Capital Economics.
Yet many food companies are raising prices in response to a jump in the cost of raw materials. Corn prices have doubled in the past six months. Prices for wheat and soybeans also have risen sharply.
Bad weather has damaged harvests in Russia, Australia, Argentina and elsewhere. At the same time, rapid growth in developing countries is raising demand for a range of commodities, pushing up prices.
Global food prices have risen 29 percent in the past year, according to a World Bank report Tuesday. They are just 3 percent below the all-time peak reached in 2008.
TWT Video Picks
Second- and third-stringers eye 2016 if front-runner stumbles
- 'We're coming for you, Barack Obama': Top U.S. official discloses threat from ISIL terrorists
- Russia shipping sophisticated weapons systems to Ukraine separatists
- NAPOLITANO: What if our democracy is a fraud?
- John McCain: Botched, two-hour execution of murderer is 'torture'
- Michelle Obama says money in politics is bad, asks donors for 'big, fat check'
- EDITORIAL: Detroit's water 'spigot bigots'
- Brian Kelly, Notre Dame ready for different route to title
- Ted Nugent loses second casino gig for 'racist remarks'
- Obama orders Pentagon advisers to Ukraine
- White House readies for House GOP impeachment push: 'Foolish' to ignore
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors
20 gadgets that changed the world
Fighting in Iraq