Consumer prices rose in February by the largest amount in seven months as gasoline prices surged again and clothing costs jumped the most in nearly two decades, as the Labor Department reported that consumer inflation rose 0.4 percent in February, the biggest one-month jump since a 0.7 percent rise in July.
Two-thirds of last month’s increase reflected a big jump in gasoline pump prices.
Core inflation, which excludes food and energy, rose 0.2 percent in February, also slightly higher than the 0.1 percent rise economists expected.
Over the past 12 months, consumer prices have risen just 0.2 percent. That was up slightly from a reading of zero for the 12 months ending in January, which had been the smallest annual change in more than a half-century.Gas prices surged 8.3 percent last month after a 6 percent rise in January. Both gains came after several months of huge declines in prices at the pump.
Total energy costs rose 3.3 percent in February, almost double the 1.7 percent January rise. But energy prices are still down 18.5 percent from a year ago. Home heating oil and natural gas prices both fell in February.
Clothing costs shot up 1.3 percent in February, the biggest one-month rise since a 1.5 percent increase in March 1990. The gain likely reflected a rebound from steep discounts offered in January as retailers were clearing store shelves after the worst holiday season in decades.
Food costs dipped 0.1 percent last month but are still up 4.7 percent over the past year. Prices for meat and dairy products fell, while fruits and vegetables rose, according to the Labor Department report.
Airline fares fell 2.6 percent last month, the biggest drop since November, but new car prices rose 0.8 percent.
The report on consumer prices followed a report Tuesday that inflation at the wholesale level rose a slight 0.1 percent in February.
