According to the US monthly survey, the cost of living in the country increased slightly in the first month of 2012, which is just below the economists’ predictions.

The Bureau of Labor Statistics in Washington reported on Friday that the CPI (consumer price index) was up 2.9% for the twelve months ending in January.

The rise in CPI is just below economists’ expectation that forecast a 0.3% gain. Economists said that the in the month of January the US CPI rose the most in four months as the price of gasoline jumped, highlighting a mounting concern that higher energy costs could slow the economic recovery.

In January, the US Federal Reserve said that it would keep its benchmark interest rate at record level low, near-zero levels through 2014, amid modest the country’s economic growth and serious risks to the global economy coming from European debt crisis.

Earlier this week, Ben Bernanke, head of the Federal Reserve said that the central bank foresees continued subdued inflation.

According to the reports, the prices of food in January increased 0.2%, pushed by high restaurant costs even as grocery costs were unaffected while dairy and meat items were higher, and the fresh fruit , vegetables, cereals and baked goods were lower. The inflation rate of food in 12-months was 4.4%.

The labor department said that the energy prices rose 0.2% in January, which was led by increasing petrol and fuel oil prices but was offset by a 2.9% drop in natural gas prices.

The Fed Reserve said in January the US inflation has been subdued in recent months, and longer- term inflation expectations have remained steady.

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