Another surge in energy prices helped push US underlying inflation up at its sharpest rate in two and a half years during March, the Labor Department said this afternoon.
Consumer prices rose by 0.6% compared with February - the biggest monthly gain since last October - following a 0.4%.
In a more worrying sign, the core rate - which strips out volatile food and energy costs - accelerated to a 0.4% increase in March from 0.3% in February. That was the biggest monthly increase in core inflation since August 2002, and reflected a broad pick-up in the pace of prices for items including food, petrol, clothing, medical care and airline fares. Both monthly inflation figures were ahead of Wall Street expectations.
Energy prices climbed 4% in March, twice the 2% rise posted in February, and are up 12.4% over the past 12 months. Petrol costs alone rose 7.9% in March and are up 16.8% from a year ago. Over the past 12 months, the consumer price index is up 3.1% while the core index is ahead 2.3%.
