Food, gas costs push US consumer prices higher

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WASHINGTON, April 16 (AP): Americans paid more for food and gas last month, but outside those volatile categories inflation remained tame. The Consumer Price Index rose 0.5 per cent in March, the Labour Department said Friday. That matched February's increase, the largest since the recession ended in June 2009. In the past 12 months, the index has increased 2.7 per cent, the biggest rise since December 2009. Excluding the volatile food and gas categories, the so-called core index rose 0.1 per cent and it is up only 1.2 per cent in the past year. But steep food and gas prices are hitting consumers hard. Gasoline jumped 5.6 per cent last month and has risen nearly 28 per cent in the past year. Consumers paid an average price of $3.81 a gallon nationwide Friday according to the travel group AAA. Food prices rose 0.8 per cent last month, the largest increase in almost three years. Prices for fruits and vegetables, dairy products, chicken and beef all increased. Coffee costs rose 3.5 per cent.