Split in Economy Keeps Lid on Prices
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Split in Economy Keeps Lid on Prices
By Jon Hilsenrath and Justin Lahart
The pace of consumer price increases in the U.S. is quickening after being dormant for months. But a tug of war between the prices of goods and the prices of services, playing out beneath the surface, could keep inflation from becoming the worry it is in China, Europe and many emerging markets.
Overall prices were up 1.6% in January from a year earlier, the government said Tuesday, the biggest increase in eight months. Rising prices for highly visible items from gasoline to Starbucks coffee are feeding popular fears that inflation is back. But in many other businesses, from barber shops …
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