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Consumer prices edge up
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February 19, 1999: 8:58 a.m. ET
January CPI rises 0.1%, below forecasts; core rate also up 0.1 %
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WASHINGTON (CNNfn) - Inflation at the retail level remained under control in January, with the consumer price index rising 0.1 percent, the U.S. Labor Department said Friday.
The core rate, excluding food and energy, also rose 0.1 percent. On an annual basis, inflation at the retail level was up a modest 1.7 percent.
The increases were less than expected. Analysts surveyed by Reuters had forecast rises of 0.2 percent for both the overall index and the core index.
In December, the CPI rose 0.1 percent, with the retail inflation rate excluding food and energy up 0.3 percent.
The lower-than-expected January increase came just a day after wholesale prices, reflected in the producer price index, rose a surprisingly strong 0.5 percent. That made some economists edgy that CPI might reflect an revival in inflation.
"I think it (CPI) faced considerable upside risks," said Daiwa Securities chief economist Michael Moran, who was especially concerned that tobacco prices would surge. So, he added, "you have to be especially pleased" with the announced data.
A 0.5 percent January increase in food costs was offset by a 0.2 percent decline in energy prices, a 1.1 percent dip in apparel prices and a 0.1 drop in housing costs, the first decline in that sector in nearly two years.
The Treasury market retreated after the 8:30 a.m. ET release of the data. The 30-year-bond was up 1/32 to 98-3/32, yielding 5.37 percent; prior to the release, the bond was up 6/32.
The Labor Department previously announced revisions in the way certain CPI components are calculated, effective with the January data. The revisions are expected to reduce CPI on an annual basis by about 0.2 percentage points. 
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