Consumer prices increase 0.4 percent in February, less than forecast, due mainly to surging cost of gas

WASHINGTON -- US consumer prices increased 0.4 percent in February, owing mainly to the surging cost of gas, the Labor Department said Thursday.

The core consumer price index (CPI), which strips out volatile food and energy costs, rose a smaller 0.1 percent on a seasonally-adjusted basis. Economists surveyed by MarketWatch forecast a 0.5 percent increase in the overall CPI, with a 0.2 percent rise in the core CPI rate.

The report showed that energy costs rose at the fastest pace in nearly a year, rising 3.2 percent, as gasoline prices rose six percent, according to Dow Jones Newswires.

Consumer prices were up an unadjusted 2.9 percent over the past 12 months, unchanged from January. The core rate has increased 2.2 percent over the past 12 months, down from 2.3 percent in January.

The government also reported that inflation-adjusted hourly wages, on average, fell 0.3 percent in February as higher prices outstripped a 0.1 percent gain in earnings.

US stock futures extended gains in reaction to the report.

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