January rise in consumer prices largest since July

WASHINGTON - Consumer prices rose by the most in six months in January, propelled by higher energy costs. But over the past year inflation has been flat, the lowest reading in more than a half-century.

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

Even with the January increase, which was in line with economists' expectations, 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.