Washington, DC, April 20—The Labor Department reported this morning that its consumer price index rose 0.6% in March and its core index rose 0.4%.
The increase in the overall index during March was the largest since October. The gain in the core index was the largest since August 2002.
Analysts has forecast a 0.5% rise in the CPI and a 0.2% gain in the core index.
The Labor Department reported that prices of energy, clothing and hotel prices increased during the month, offsetting falling prices for new cars and prescription drugs.
The consumer price index has risen 3.1% in the past 12 months, compared with 3% in the 12 months ending in February. Core prices, which exclude food and energy prices, have risen 2.3% in the past 12 months, down from 2.4% a month ago.
The CPI rose 0.4% in February, with core prices increasing 0.3%.
In March, energy prices jumped 4%, the highest since October. Gasoline prices rose 7.9%.
Food prices rose 0.2%, with higher prices for beef, poultry and vegetables offsetting declines in pork and fruit.
Housing prices rose 0.5%, the biggest increase since January 2001. Much of the outsized increase came from hotel fares, which climbed a record 3.9%. Residential rents increased a more moderate 0.2%, while homeownership costs increased 0.3%.
Medical costs increased 0.5%, including a 0.7% gain in hospital services. Prescription drug prices fell 0.1%.
Transportation prices increased 1.9% in March. Airfares rose 2.7%, the most since June 2001. New car prices fell 0.4%.
