By CountingPips.com
US consumer prices increased by a bit more than expected in February as energy and food price rises pushed the consumer price index higher, according to a report released today by the U.S. Department of Labor. The consumer price index, a key gauge of inflation, increased by 0.5 percent in February following an increase of 0.4 percent in each of January and December.
Today’s data advanced higher than the economic consensus that was predicting a 0.4 percent rise for the month. Consumer prices have now shown higher levels every 
month since July 2010 and the annual rate of consumer prices rose by 2.1 percent when compared to February 2010.
Rising energy prices continued to be a significant contributor in the increased inflation as the report showed that the energy index rose by 4.8 percent, gasoline prices increased by 4.7 percent and fuel oil rose by 5.8 percent for the month.
Food prices also advanced by 0.6 percent in February after a 0.5 percent increase in January.
The core inflation reading, that excludes volatile food and energy prices, increased by 0.2 percent for a second straight month and surpassed the market forecasts expecting a 0.1 percent gain. The annual rate of core inflation increased by 1.1 percent for February.
Elsewhere in US economic releases, the Philadelphia Federal Reserve manufacturing survey rose by much more than expected with a 43.4 score in March. This follows a 35.9 reading in February and surpassed the 30.0 score economic forecasts were looking for.
The US leading indicators index increased by 0.8 percent in February following a 0.1 percent score in January. The data was just below forecasts looking for a 0.9 percent rise.
US initial jobless claims fell back below 400,000 last week with a total of 385,000 new weekly jobless claims as of March 12th. This was a decrease of 16,000 claims from the week prior which totaled 401,000. Continuing claims for jobless benefits declined by 80,000 from the previous week to a total of 3,706,000 as of data from March 5th.
US Dollar mostly on defensive in Forex Trading
The U.S. dollar has been mixed in forex trading today against the other major currencies in the US trading session. The dollar has been losing ground versus the euro, Canadian dollar, British pound sterling, Australian dollar and the Swiss franc while gaining some ground against the New Zealand dollar, according to currency data by Oanda. The dollar has been trading virtually unchanged versus the Japanese yen.
The US stock markets, meanwhile, have rebounded today with the Dow Jones rising by over 100 points, the Nasdaq increasing by over 20 points and the S&P 500 showing a 14 point gain.
Oil has traded higher by $3.40 at $101.38 per barrel while gold futures have been virtually unchanged at $1.396.00 per ounce.
