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Gas, clothing costs push up consumer prices

WASHINGTON — Consumer prices rose in February by the largest amount in seven months as gasoline prices surged again and clothing costs jumped the most in nearly two decades.

But the increase appeared to ease many economists’ concerns about dangerous price movements in either direction.

The recession is expected to dampen any inflation pressures for at least the rest of this year, while the slight uptick in prices over the last two months also has made the possibility of deflation more remote.

The Labor Department reported Wednesday that consumer inflation rose 0.4 percent in February, the biggest one-month jump since a 0.7 percent rise in July.

Two-thirds of last month’s increase, which was slightly more than analysts expected, reflected a big jump in gasoline pump prices.

AIG planning to sell HQ, office building

NEW YORK — AIG said Wednesday it’s putting its downtown Manhattan headquarters and a nearby office building on the sales block.

Mark Herr, spokesman for American International Group Inc., said the company is evaluating the sale of 70 Pine St. and 72 Wall St. as part of its efforts to boost operations.

Associated Press