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| Version 1 | Version 2 |
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| US consumer prices top forecast | US consumer prices top forecast |
| (about 3 hours later) | |
| US consumer prices increased more than expected in January, figures have shown, despite a fall in energy prices. | US consumer prices increased more than expected in January, figures have shown, despite a fall in energy prices. |
| US Department of Labor figures showed rising medical and food costs pushed consumer prices up 0.2% in January. | US Department of Labor figures showed rising medical and food costs pushed consumer prices up 0.2% in January. |
| The increase was below December's 0.4% rise but above the 0.1% forecast. Core inflation, which excludes food and energy, rose by 0.3% for the month. | The increase was below December's 0.4% rise but above the 0.1% forecast. Core inflation, which excludes food and energy, rose by 0.3% for the month. |
| While the Federal Reserve recently said inflation was in check, it also left open the chance of raising rates. | |
| Inflation concerns | Inflation concerns |
| In recent months, rising energy prices have been a key inflationary factor, but last month, energy prices fell by 1.5%. | In recent months, rising energy prices have been a key inflationary factor, but last month, energy prices fell by 1.5%. |
| Petrol prices in January dropped 3% - leaving them 32% lower than at their high point in July 2006, when oil peaked at about $78 a barrel. | Petrol prices in January dropped 3% - leaving them 32% lower than at their high point in July 2006, when oil peaked at about $78 a barrel. |
| However, this drop was not enough to counter higher food prices, as dairy products, fruit and vegetables all became more expensive. Overall, food costs rose by 0.7%, the biggest increase since 2005. | However, this drop was not enough to counter higher food prices, as dairy products, fruit and vegetables all became more expensive. Overall, food costs rose by 0.7%, the biggest increase since 2005. |
| Medical care costs went up by 0.8%, the sharpest rise in 15 years, as prescription drugs and doctor services became more expensive. | Medical care costs went up by 0.8%, the sharpest rise in 15 years, as prescription drugs and doctor services became more expensive. |
| These latest figures brought the annual rate of consumer price inflation to 2.1% for the 12 months to January. | These latest figures brought the annual rate of consumer price inflation to 2.1% for the 12 months to January. |
| Federal Reserve chairman Ben Bernanke recently indicated in testimony to Congress that inflation was heading lower and would gradually fall over the next two years. | Federal Reserve chairman Ben Bernanke recently indicated in testimony to Congress that inflation was heading lower and would gradually fall over the next two years. |
| But analysts remain far from certain about how the Fed will choose to act in coming months. | But analysts remain far from certain about how the Fed will choose to act in coming months. |
| "The Fed will be vigilant in the face of rising inflation," said Jeffrey Saut, chief investment strategist at Raymond James Financial. | "The Fed will be vigilant in the face of rising inflation," said Jeffrey Saut, chief investment strategist at Raymond James Financial. |
| Similarly, economist Simon Wallace of the Centre for Business Economic Research said that with "both headline and core inflation rising above expectations, inflationary concerns will not be diminished". | Similarly, economist Simon Wallace of the Centre for Business Economic Research said that with "both headline and core inflation rising above expectations, inflationary concerns will not be diminished". |