March 17, 2004 7:45 AM, EST

Rise in Consumer Prices Slows in February

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rices paid by U.S. consumers rose 0.3% in February, led by higher costs for gasoline, the Labor Department said Wednesday.

The rise in the consumer price index followed a 0.5% gain in January. Excluding energy and food, core prices increased 0.2% in February.

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

So far this year, consumer prices are rising at a 4.6% annual rate compared with a 5.4% increase at the same time last year.

Consumer prices of all goods and services are up 1.7% for the year ended last month compared to a 1.9% increase in 12 months ended in January.

Labor said that energy prices rose 1.7% in February after jumping 4.7% a month earlier. Gasoline prices increased 2.5%.

Food prices, which account for about a fifth of the index, rose 0.2% in February.