Consumer prices show first gains in several months

Consumer prices increased in January for the first time in several months, according to new figures from the Department of Labor.

The department's latest Consumer Price Index summary found a 0.3 percent increase in the cost of consumer goods, largely due to rising energy prices. The index had actually declined for three consecutive months prior to January following two months of zero percent change.

"A bit of inflation is encouraging. It means businesses aren’t completely giving up and slashing prices. The fact that they can at least hold the line on their price cuts is a positive," Mark Zandi of Moody's Economy was quoted as saying in a New York Times report.

In the Labor Department's report, transportation costs were up 1.3 percent while energy was up 1.7 percent. Other categories such as housing and food posted much smaller changes of less than 0.5 percent.

The latest figures may help calm some lingering fears among analysts about the possibility of deflation further impacting the recession, although much of this will depend on whether the recession continues to deepen in the coming months.