Energy Costs Boost Consumer Price Index in March

rices paid by U.S. consumers rose 0.5% in March, boosted by rising energy costs, the Labor Department said Wednesday.

This was the fourth straight increase in the consumer price index and followed a 0.3% gain in February. Excluding energy and food prices, the core index rose 0.4%, the largest rise since November 2001.

The consumer price index is the government's broadest gauge of costs for goods and services. Almost 60% of the CPI covers prices consumers pay for services. If consumer prices are rising, it could reflect an uptick in demand for consumer goods, which increases the demand for trucking services.

Labor said consumer prices of all goods and services are up 1.7% for the year ended last month, the same as for the 12 months through February. So far this year, consumer prices are rising at a 5.1% annual rate, compared with a 5.4% increase at the same time last year.

Energy prices, which account for about a 14th of the index, jumped 1.9% in March, Labor said. Gasoline prices surged 5.5%.

The cost of clothing gained 0.9%, the biggest increase since April 1999. Food prices, which account for about a fifth of the index, rose 0.2%.

11347