NEW YORK (AP) — Oil prices are climbing to near $87 per barrel on encouraging economic news in the U.S. and China.

Benchmark crude rose $2.50, or 3 percent, at $86.73 per barrel in morning trading in New York, while Brent crude rose $3.17, or 2.9 percent, to $114.28 in London.

Prices jumped early in the morning after China said its inflation rate dropped last month, giving Chinese leaders more room to further stimulate the economy without overheating.

In the U.S., consumers spent more on cars, clothing and furniture last month. Consumer spending drives the U.S. economy, and an increase adds hope that a recession isn't around the corner.