WASHINGTON (AP) — Consumer prices were flat last month, as the weak economy limits the ability of companies to charge more for goods and services.
The Labor Department's report Thursday indicates there is little sign of inflation, which enables the Federal Reserve to keep the short-term interest rate it controls at a record low in an effort to revive the economy.
A rise in food prices last month was offset by a drop in gasoline and other energy costs.
Excluding volatile food and energy prices, The Labor Department says the core Consumer Price Index rose by 0.1 percent in February. That matched analysts' estimates.
Consumer prices rose 2.1 percent in the past year, down from January's 2.6 percent pace. The core index rose 1.3 percent in the past year, down from 1.6 percent in January.
