Summary Box: Consumer prices flat in January as weak economy keeps inflation in check
COST OF LIVING FLAT: The price of clothing, shelter and other goods was unchanged last month, the government said, as a drop in energy prices offset a rise in food costs.
NO INFLATION: The report shows that the weak economy is keeping a lid on inflation. That enables the Federal Reserve to keep the key short-term interest rate it controls at a record low rate of nearly zero to boost the economy.
GOING LOWER: High unemployment and stagnant wages limit consumer spending. That makes it harder for companies to raise prices, a trend economists expect to last for the rest of this year.

Copyright 2010  AP News
Comments