WASHINGTON -  US economic growth was revised upward to an annual rate of 2.8 percent in the fourth quarter of last year, compared with the estimated pace of 3.2 percent in January, the US Department of Commerce announced Friday.

Related readings:  Japan's populatoin in slowest growth since 1920  China's 2011 industrial output growth may slow to 11%  Three provinces lower GDP targets  Boeing wins US air tanker battle

The increase in real gross domestic product (GDP) in the fourth quarter primarily reflected positive contributions from personal consumption expenditures, exports, and nonresidential fixed investment that were partly offset by negative contributions from private inventory investment as well as state and local government spending, the department said in a report.

The price index for gross domestic purchases, which measures prices paid by US residents, rose 2.1 percent in the fourth quarter last year, quicker than a 0.7 percent increase in the third quarter, the report said.

Excluding food and energy prices, the price index for gross domestic purchases rose 1.2 percent in the fourth quarter, compared with an increase of 0.4 percent in the third quarter.