U.S. consumer prices up because of higher gas costs - WKOW 27: Madison, WI Breaking News, Weather and Sports

U.S. consumer prices up because of higher gas costs

Posted:

WASHINGTON (WKOW) -- U.S. consumer costs were up in February after a sharp jump in gas prices. But inflation stayed mild, despite the spike in pump prices.

The consumer price index had the largest increase in 10 months. The Labor Department says it rose 0.4 percent, but gas prices rose six percent to account for most of the gain.

For the first time in 19 months, food prices were unchanged. So-called "core" prices rose just .1 percent, excluding food and energy.

Consumer prices rose 2.9 percent in the past 12 months, the same year-over-year change as last month. Over the same period, core prices increased 2.2 percent. That's lower than January's year-over-year figure.

Mild inflation allows the Fed to maintain its low interest-rate policy.

Powered by Frankly