Fuel, natural gas prices create jump in inflation

The biggest jump in energy costs since the start of the Iraq war stung motorists and people heating their homes in January.

From an economic perspective, though, the nation’s overall inflation picture still looked good.

The Consumer Price Index, the government’s most closely watched inflation gauge, rose by 0.5 percent, more than double December’s 0.2 percent increase, the Labor Department reported Friday. Much of the January jump was blamed on sharply higher energy prices.

Gasoline prices jumped last month by 8.1 percent. In Lawrence, the average price of gasoline was $1.60 per gallon, up 1.9 percent from a month ago, according to a survey by AAA. Nationally, natural gas prices were up 3.8 percent. Above Sabir Masih pumps gasoline Friday at a convenience store in Ewing, N.J.

Telecommunications

Vodafone unlikely to seek other takeover targets

Days after losing a bidding war for AT&T Wireless Services, Europe’s biggest mobile phone operator Vodafone Group PLC said Friday that it saw no other likely takeover targets in the United States and might even consider selling its 45 percent stake in U.S. market leader Verizon Wireless.

Vodafone chief executive Arun Sarin discussed his company’s American strategy in the wake of Tuesday’s agreement by Atlanta-based Cingular Wireless to pay nearly $41 billion for AT&T Wireless.

If Vodafone were to receive an appropriate offer for its minority stake in Verizon Wireless, it could use the money to invest in its European operations or return it to shareholders, Sarin said.

Technology

Microsoft to fight antitrust allegations

Microsoft Corp. argued Friday that its conduct in breaking into the digital media field “constitutes permissible competitive activity,” and accused rival RealNetworks of using an antitrust lawsuit to gain market share.

The software giant was responding to an antitrust lawsuit that Seattle-based RealNetworks filed in December in U.S. District Court in San Jose, Calif.

Microsoft’s response, filed Friday, indicated — as expected — that the software giant would vigorously defend itself.

RealNetworks claimed Microsoft violated state and federal antitrust laws, and accused Microsoft of illegally tying its Windows Media Player software with copies of the ubiquitous Windows operating system, regardless of whether users wanted the digital media player system.