Energy prices continue to fall and the dollar remains strong, yet there are signs that inflation may be rising, according to Wall Street Journal staffer Kate Davidson.

Davidson, citing last Friday's Labor Department's consumer price index, said that prices were flat in January, but had grown 1.4% year over year. This was the fastest annual gain since October 2014, when energy prices began to fall.

Excluding the volatile food and energy categories, so-called core prices rose 0.3% in January, the biggest monthly increase in more than four years. From a year earlier, core prices were up 2.2%, the most since June 2012.

”Broad-based price growth is signaling that the wage and price pressures are building, an indication that the economy is expanding at a solid pace and that recessionary concerns are overdone,” PNC economist Gus Faucher said.

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