Inflation Increases As Energ ...
Rising energy prices pushed U.S. consumer inflation up in February to its fastest rate in four months, the Labor Department reported, reinforcing concerns that inflation may be poised to take off in a way that would roil the U.S. economy.</br></br>The figures followed the Federal Reserve's clear warning Tuesday that it stands ready to raise interest rates more aggressively in coming months if necessary to keep inflation under control.</br></br>The danger, economists said, arises if Fed officials have to raise interest rates so high to choke off inflation that they also brake economic growth, driving stock prices down and unemployment up.</br></br>That worry is heightened by the fact that prices are rising faster than wages for most workers, which means their earnings have fallen over the past year after adjusting for inflation, sapping consumer buying power.</br></br>The consumer price index, the Labor Department's widely followed measure of inflation, rose 0.4 percent last month, up from a 0.1 percent increase in January, primarily because of a 2 percent gain in energy prices.