Consumer prices rise; inflation picking up

Consumer prices rose at the fastest pace in four months in February and home sales fell, fresh signs that inflation and higher interest rates may be exacting a toll on the U.S. economy.

The latest snapshot of inflation, released by the Labor Department on Wednesday, raised the chances that the Federal Reserve might have to be more aggressive in its interest rate-raising campaign, economists said.

The consumer price index jumped 0.4 percent in February as costs rose for items like energy, health care and education. The pickup in inflation came after consumer prices were flat in December and increased by just 0.1 percent in January.

“It’s clear that Fed members saw this coming their way,” said Oscar Gonzalez, economist at John Hancock Financial Services. “Inflation is rising, but the sky isn’t falling.”

Leadership

Golf course association executive resigns

The No. 2 executive at the Golf Course Superintendents Association of America is leaving the Lawrence-based organization, effective the end of the month.

Julian Arredondo, chief operating officer since March 2003, said he was looking “forward to what might lie ahead.”

Steve Mona, association CEO, said he would review the association’s senior leadership structure before filling the position. Arredondo, 47, has been with the association since 1993, when he started as chief financial officer.

The association has 140 employees at its headquarters at 1421 Research Park Drive.

Automobiles

Cruise control switch fuels probe at Ford

The National Highway Traffic Safety Administration said Wednesday it would investigate more than 3.7 million Ford Motor Co. pickups and sport utility vehicles for a defect in a cruise control switch that led to a January recall.

The agency said it would examine Ford F-150 pickups from the 1995-1999 and 2001-2002 model years and Ford Expeditions and Lincoln Navigators from the 1997-1999 and 2001-2002 model years.

NHTSA officials said they had received 218 complaints of engine fires from the cruise control switch in those models. No injuries or fatalities have been reported.

The new investigation does not include the 2000 model years of the vehicles, which was covered by the January recall of nearly 800,000 vehicles. Ford said the cruise control switch could short circuit and cause an engine compartment fire when the vehicle was parked or being driven, even if the cruise control was not being used.