U.S. consumer prices rose last month as the increasing cost of energy, food and airline tickets cancelled out the biggest drop in clothing prices in nearly a decade, according to new figures released Wednesday. The U.S. Labor Department said that consumer prices rose 0.3 percent in March after no change in February. Core inflation, which excludes the more volatile measurements of food and energy, rose 0.2 percent last month. Both the overall increase and the rise in core prices were in line with analysts' expectations. In the last 12 months, rising energy costs have contributed to a 4 percent increase in inflation. Energy costs have risen 17 percent, while food prices are up 4.4 percent. Elsewhere, the U.S. Commerce Department reported a bigger-than-expected decline in new home construction for March. The data showed activity down 11.9 percent to a seasonally adjusted annual rate of 947,000 units – the lowest level in 17 years. Building permits also fell, suggesting that construction would remain weak ahead. According to the Federal Reserve, industrial output in the United States rose by 0.3 percent in March, better than the 0.1 percent decline that analysts had expected. Industrial production fell by 0.7 percent in February. The March gain was largely the result of a 1.9 percent surge in output at the nation's utilities and a 0.9 percent rise in mining production. Manufacturing output rose just 0.1 percent rise after a 0.5 percent drop in February.
