WASHINGTON - Consumer prices increased 0.5% in February, the largest gain in 20 months, as commodity prices accelerated, the Labor Department reported Thursday.
Core consumer prices, which exclude food and energy, increased 0.2% for the month, matching a 0.2% gain in January. February food prices increased 0.6%, the largest spike since September 2008. Energy prices increased 3.4%, following a 2.1 gain in January.
Economists expected consumer prices would rise 0.4% and core prices would increase 0.1%, according to the median estimate from Thomson Reuters.
Food prices rose 0.6% as food eaten at home increased 0.8%, the largest gain since July 2008.
Energy prices have been trending higher as the economy recovers and as turmoil in the Middle East propelled crude oil prices above $100 a barrel in February. Gasoline prices rose 4.7% in February following a 3.5% rise in January.
But core prices are increasing as well. All consumer items excluding energy products increased 0.3% in February -- the largest increase since July 2008.
New vehicle prices rose 1.0% last month. Medical services and airline fares also posted prices increases in February.
Consumer prices have increased for eight straight months going back to July 2010. For the 12 months ending in February, consumer prices gained 2.1%.
Core prices increased 1.1% over the last 12 months, the largest annual increase in 11 months.
Average hourly earnings were flat in February, leading real earnings to fall 0.5% as consumer prices increased.
