Washington, DC, April 19, 2006--The consumer price index rose 0.4% in March, according to the Labor Department, the core index, which excludes food and energy prices, increased 0.3%.
Economists had forecast an increase of 0.3% in the CPI and a 0.2% increase in the core during the month.
In the past 12 months, the CPI has risen 3.4%, down from a 3.6% annualized growth last month. The core CPI is up 2.1% over that time, near the top end of the Federal Reserve's presumed comfort zone for inflation.
For the first quarter, core consumer prices were up 2.8%, after having risen 2.2% for all of 2005. About two-thirds of the acceleration came from higher prices for shelter, the department said.
With the CPI up 0.4%, real or inflation-adjusted weekly earnings fell 0.3% in March, the Labor Department said in a separate report. In the past year, average weekly earnings have risen 3.7%.
Energy prices rose 1.3% in March, completely reversing the decline in the previous month. Gasoline prices increased 3.6%, while electricity prices rose 0.5%
Food prices rose 0.1%, moving up on higher prices for beef and poultry.
Housing costs increased 0.2%. Lodging away from home increased 0.8%.
Transportation costs increased 0.9%, on higher fuel costs. New car prices fell 0.1%, with airfares up 1.1%.
Medical prices increased 0.4%. Physicians' services prices rose 0.5%, while drug prices moved up 0.6%.
