CPI Rises in February and Up 2.3% Over 12 Months

Underlying U.S. inflation increased more than expected in February as rents and medical costs maintained their upward trend, which could keep the Federal Reserve on course to gradually raise interest rates this year.

The Labor Department has reported that its Consumer Price Index (CPI), excluding the volatile food and energy components, increased 0.3 percent after a similar gain in January.

In the 12 months through February, the  core CPI rose 2.3 percent, the largest gain since May 2012, after increasing 2.2 percent in January.

Economists had anticipated the core CPI rising 0.2 percent last month and increasing 2.2 percent from a year ago.

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