Little Inflation Allows Fed to Focus on Growth: Economy

The cost of living in the U.S. rose at a slower pace in January, giving the Federal Reserve scope to maintain stimulus to allow the world’s largest economy to strengthen further.

The consumer-price index increased 0.1 percent after a 0.2 percent gain in December, according to Labor Department data today in Washington. Other reports showed claims for jobless benefits fell last week, bad weather played havoc with manufacturing figures this month and consumers were feeling less pessimistic about the economic outlook.