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Inflation at lowest point in 50 years

WASHINGTON — Consumer prices rose modestly in January, propelled by higher energy costs, but most economists and the government believe the recession will keep prices in check this year.

That's because inflation was zero over the past year, the lowest reading in more than a half-century.

The Labor Department said today that consumer prices rose by 0.3 percent last month, the biggest monthly increase since a 0.7 percent rise in July.

But even with the January increase, inflation for the 12 months ending in January was zero. That's the lowest reading since prices actually fell by 0.4 percent for a 12-month period ending in August 1955.

Core inflation, which excludes energy and food, showed a modest increase of 0.2 percent, slightly higher than the 0.1 percent gain economists expected.

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