Inflation Shows Signs of Life as Americans Gain Confidence

Companies are starting to test their pricing power as American households become more confident the economic expansion will be sustained.

The cost of living excluding food and fuel rose 0.2 percent in March for a third month, reflecting broad-based gains in rents, medical care, clothing and used vehicles, a Labor Department report showed Friday in Washington. The University of Michigan said its preliminary consumer sentiment index for April climbed to the second-highest level in more than eight years.