Is it time to start worrying about inflation? So-called core inflation, which strips out volatile food and energy categories, rose 0.3 percent in January, the biggest monthly increase in more than four years, consumer price index data showed on Friday. In the 12 months through January, the core CPI advanced 2.2 percent, the largest rise since June 2012 and greater than the 1.9 percent average annualized increase over the last 10 years.
In addition to concern about increasing prices, the figure drew a lot of attention because it's above the Fed's 2.0 percent inflation target. But the Fed looks at overall CPI, not the core figure.
The overall CPI was unchanged in January after slipping 0.1 percent in December. That measure of CPI has now increased 1.4 percent in the 12 months through January, under the Fed's target but still the biggest rise since October 2014.