Watch the Dow continue to fall today as news of higher than expected inflation during the month of February hits Wall Street.
Consumer prices rose by 0.4 percent in February, the most in four months, offering a fresh sign that inflation is gaining momentum.
The increase in the consumer price index, the government’s most closely watched inflation barometer, came after prices nudged up by just 0.1 percent in January, the Labor Department reported Wednesday.
Excluding energy and food prices, which can swing widely from month to month, “core” prices rose by 0.3 percent in February. That was up from a 0.2 percent increase in January and represented the largest increase since September.
Although sharp increases in energy costs — including gasoline — led the way in February, many other prices, including airfares, medical care, and for education, also went up.
Before the release of the CPI report, economists were forecasting a 0.3 percent rise in overall consumer prices and a 0.2 percent advance in core prices.