Consumer Price Index Rises 0.3% on Higher Gasoline Prices

ed by higher costs for gasoline, consumer prices rose for the third straight month in August, the Labor Department reported Tuesday.

The consumer price index, a closely monitored indicator of inflation, rose 0.3% in August after 0.2% increases in the prior two months. Excluding volatile food and energy costs, the "core" index rose 0.1% after rising 0.2% the month before.

The core reading was 1.3% higher than in August 2002, the smallest year-over-year gain since February 1966.

Labor also said new-car prices rose 0.5% last month.

So far this year, consumer prices have been rising at a 2.4% annual rate, compared with a 2.7% pace in the same eight months of last year, Labor said. Prices excluding fuels and food have been rising at a 1.2% annual rate compared with a 2.2% rate.