U.S. consumer prices rose slightly in March, as lower gasoline costs helped offset higher prices for food and clothing, the government reported Tuesday, indicating that inflation pressures remain generally tame. The Labor Department said its consumer price index (CPI) increased 0.2 percent last month after rising 0.1 percent in both February and January. Over the past 12 months, consumer prices have risen only 1.5 percent, well below the 2 percent Federal Reserve (Fed) target for inflation. Food prices rose 0.4 percent after rising by the same amount in February. A drought in the western United States has elevated prices for meat, dairy, fruit, and vegetables. Gasoline prices plunged 1.7 percent in March, lowering costs for the entire energy category. It was the third consecutive month of gasoline price declines. Core CPI, which excludes volatile energy and food costs, also rose 0.2 percent in March after increasing 0.1 percent the previous month. In the 12 months ending in March, core CPI advanced 1.7 percent, also below the 2 percent Fed target.
