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Energy price spike leads February CPI rise.
(From FT Investor (Stories))
The US consumer price index surged last month at the fastest pace in more than two years, but the jump owes to oil price fluctuations ahead of the war in Iraq.
The US labour department said the CPI rose 0.6 per cent in February - the biggest increase since January 2001 - following a 0.3 per cent increase in January. A 5.9 per cent increase in energy prices - the biggest since June 2000 - led the charge.
The rise in CPI could end up a mere blip if crude continues to fall on optimism the US will win quickly and decisively its war with Iraq without significantly disrupting oil supplies.
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