U.S. consumer prices rise for first time in four months

U.S. consumer price index (CPI) increased for the first time in four months in February, official data showed Tuesday, potentially encouraging the Federal Reserve to move closer to its first interest-rate hike in nearly a decade.

The CPI increased 0.2 percent in February on a seasonally adjusted basis, and over the last 12 months, the index was unchanged before seasonal adjustment, according to the latest data from the Labor Department.

The energy index rose 1 percent as the gasoline index nudged up after a long series of declines. The food index rose 0.2 percent in the month, compared with a zero growth in January.

The index for all items less food and energy, the so-called core price index, also rose 0.2 percent in February, the same increase as in January.

The rebound of the CPI in February might offer confidence for the Fed to raise interest rates this year. Fed vice chairman Stanley Fischer said Monday that an increase in the target federal funds range likely will be warranted before the end of the year, but he stressed the path for a rate hike will not be smooth.

The Fed stressed in its recent monetary policy meetings that it will be appropriate to raise the rate when there has been further improvement in the labor market and it is "reasonably confident" that inflation will move back to its 2 percent objective over the medium term. Endite