Consumer prices were flat in December for a second straight month following advances of 0.1, 0.3, and 0.4 percent in October, September, and August.

"Similar to last month, the energy index declined in December and offset increases in other indexes. The gasoline index declined for the third month in a row and the household energy index declined as well," the US Labor Department said in its monthly Consumer Price Index (CPI) report which is seen as the government’s key barometer for US inflation. "The food index rose in December, with the index for food at home turning up after declining last month," the bureau added.

Food prices rose quicker than any other government watched items in December. Home food costs jumped 0.3 percent after falling 0.1 percent in November. The overall food index gained 0.2 percent against the previous 0.1 percent, and it is up 4.7 percent over the year.

The game-changer since October has been falling energy prices, led by gasoline. Prices at the pump were down 2.0 percent last month following previous monthly dips of 2.4 and 3.1 percent. Gasoline had surged 2.9 percent as recently as September, and Americans are still paying 9.9 percent more to fill up their cars as compared to one year ago.

Speaking of cars, new vehicle prices have declined for three straight months while used car prices have dipped for four. Clothing prices are also lower by 0.1 percent after two previous monthly increases.

"Inflation pressures are easing, with sharp drops in energy, vehicle and consumer goods prices," said Chris Christopher, senior economist at IHS Global Insight, according to MarketWatch. "During the holiday season many chain store retailers offered heavy discounts in order to get shoppers to open their wallets."

Stripping out the more volatile food and energy items, the so-called core US inflation rate rose 0.1 percent in December after advancing 0.2 percent in November and registering matching increases of 0.1 percent in October and September.

US inflation picked up 3.0 percent in the 12 months ending December after climbing 3.4 percent in November and surging 3.5 and 3.9 percent in each of the year-over-year increases ending October and September. Yet, the annual inflation rate was at 1.5 percent just one year ago.

The core US inflation rate rose 2.2 percent from December 2011 which equaled the margin in November and remains the highest since October 2008 when the rate was 2.5 percent. Prior increases included 2.1 percent for October and 2.0 percent for September. The 12-month core inflation rate is closely watched by the Federal Reserve. The level remains above the Fed’s target range which is not officially stated but often cited from 1.5 to 2.0 percent.

"We already know that gas prices are starting to go back up in January, so I think a lot of analysts are mistakenly looking at the trend in headline inflation and seeing relief there," CNNMoney.com quoted Carl Riccadonna, senior U.S. economist at Deutsche Bank.

The following table provides US Labor Department inflation data ranging from June to December and on a 12-month basis.

December 2011 Consumer Prices – Gains (percent)

The US Labor Department will publish January 2012 Consumer Price Index information on February 17, 2012 at 8:30 AM Eastern Time. Current and historic CPI data is used as the core data for the US Inflation Calculator.

Consumer prices were unchanged in November on a seasonally adjusted basis after falling 0.1 percent in October. Increases of 0.3, 0.4 and 0.5 percent had been reported by the bureau for the respective months of September, August and July. Falling energy prices have been the major catalyst in recent inflation dips.

"The energy index declined for the second month in a row and offset increases in the indexes for food and all items less food and energy," noted the US Labor Department in its monthly Consumer Price Index (CPI) report which is seen as the government’s key measure of US inflation. "As in October, the gasoline index fell sharply and the index for household energy declined as well."

Food prices in November were 0.1 percent higher, matching October’s level. Energy prices declined 1.6 percent after falling 2.0 percent previously. Leading declines was a 2.4 percent drop in gasoline prices. Gasoline had fallen 3.1 percent in October following three straight monthly increases.

"The pace of inflation has clearly moderated in recent months, and is expected to continue to ease in the months ahead," wrote Jim Baird, chief investment strategist for Plante Moran Financial Advisors, in a research note cited on CNNMoney.com.

"This is more good news for the consumer. Should inflation continue to moderate, households should feel better about their ability to spend a bit more freely," he added.

Stripping out volatile food and energy prices, the so-called core US inflation rate advanced 0.2 percent in November after monthly advances of 0.1 percent in October and September. The level was the biggest increase since August. None of the major core consumer goods and services tracked by the US Labor Department registered directional changes, but increases were moderated.

• Used car prices fell 0.1 percent against the previous 0.1
• Clothing costs rose 0.6 percent versus 0.4
• Medical car went up 0.2 percent against 0.3

New car prices declined 0.3 percent for a second straight month and the cost of shelter was 0.2 percent higher, also matching the previous month.

US inflation climbed 3.4 percent in the 12 months ending November after advancing 3.5 and 3.9 percent in each of the year-over-year increases ending October and September. The annual inflation rate was at 1.1 percent one year ago and registered a record low of 0.6 percent in October 2010.

"If you look at the headline number, you’ll see it’s been undermined over the last two months by a significant drop in energy prices. But this decline is not sustainable. Oil prices are back around $100 a barrel now, so it suggests we’re likely to see a rebound," Reuters noted Michael Woolfolk, Senior Currency Strategist at BYN Mellon.

"More troubling is the persistent rise in core inflation, which surprised to the upside. We’ve been ignoring headline inflation because of the volatility of food and energy prices, but if they remain high, they will drag core higher."

The core US inflation rate rose 2.2 percent from November 2011, after increases of 2.1 percent in October and 2.0 percent in September and August. The level is the highest since October 2008. This longer term core inflation index is the one most closely watched by the Federal Reserve. The core index edged a bit higher yet again over the Fed’s target range which is not officially stated but often cited from 1.5 to 2.0 percent.

US Labor Department inflation data from May through to November and on a 12-month basis follows:

November 2011 Consumer Prices – Gains (percent)

The US Labor Department will publish the December 2011 Consumer Price Index information on January 19, 2012 at 8:30 AM Eastern Time. Current and historic CPI data is used as the core data for the US Inflation Calculator.

The US Labor Department on Wednesday said consumer prices fell 0.1 percent in October after rising 0.3, 0.4 and 0.5 percent in the respective months of September, August and July. Consumer prices last dipped on a monthly basis in June (by 0.2 percent) due to sharply lower energy costs. The catalyst for October’s decrease was markedly the same.

"A decline in the energy index more than offset small increases in the indexes for food" and other items to create the decrease, noted the US Labor Department in its monthly Consumer Price Index (CPI) report which is seen as the government’s main gauge for US inflation.

"The energy index turned down in October after increasing in each of the three previous months as the gasoline and household energy indexes declined after a series of seasonally adjusted increases. The food index rose in October, but posted its smallest increase of the year as the fruits and vegetables index declined sharply," the US Labor Department explained.

Food prices in October edged 0.1 percent higher following a pick-up of 0.4 percent in September. Energy prices fell 2.0 percent after rising 2.0 previously. Leading declines was a 3.1 percent drop in gasoline. As a comparison, prices at the pump jumped 2.9 percent in the previous month.

The CPI picture is not all rosy, however. Despite the latest drop in gasoline prices, they are still painfully 23.5 percent higher than a year ago. And on a further sour note, crude oil on Wednesday hit $100 per barrel for the first time since July. Oil prices were in the $75 area as early as October.

Stripping out volatile energy and food prices, core US inflation in October advanced 0.1 percent for a second straight month — the smallest gains this year. Among core consumer goods and services to see directional changes:

• New car prices fell 0.3 percent versus an unchanged reading in September, and
• Clothing costs rose 0.3 percent against the previous 1.1 percent decline

Used car prices declined 0.6 percent, matching the previous month. Accelerated prices in October included shelter (+0.2 percent vs. +0.1 percent) and medical care (+0.5 vs. +0.2 percent).

US inflation rose 3.5 percent in the 12 months ending in October after advancing 3.9 and 3.8 percent in each of the year-over-year gains ending in September and August. The annual rate was at 1.1 percent as recently as last November and registered a record low of 0.6 percent in October 2010.

The core US inflation rate over the past year rose 2.1 percent, up from the 2.0 percent increases reported in September and August. The longer term core inflation index is the one most watched by the Federal Reserve. The core index stands a bit above the Fed’s target range which is often cited from 1.5 to 2.0 percent. Most analysts are not, at least yet, voicing concerns.

"The inflation outlook is pretty benign," Bloomberg quoted Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia, who correctly projected the CPI decline. "The fact that recent higher readings are moderating certainly speaks well to the Fed’s accommodative policy."

US Labor Department inflation data on a 12-month basis and between April and October follows:

October 2011 Consumer Prices – Gains (percent)

The US Labor Department will release the November 2011 Consumer Price Index data on December 16, 2011 at 8:30 AM Eastern Time. Current and historic CPI files are used as the core data for the US Inflation Calculator.

Consumer prices rose 0.3 percent in September after rising 0.4 percent in August and jumping 0.5 percent in July, according to a US government report released Wednesday morning. The increase was mostly in line with economists’ expectations, and led by higher energy and food prices.

Increases in energy and food indexes were the main cause of the seasonally adjusted all items increase," noted the US Labor Department in its monthly Consumer Price Index (CPI) report. "The gasoline index continued to rise, and indexes for electricity and natural gas increased as well. Broad increases in food indexes also continued in September, with the food at home index rising 0.6 percent for the third month in a row and no major grocery store food group indexes declining."

Per the numbers, the department said energy prices rose 2.0 percent in September, which was up from the 1.2 percent increase in the previous month. Prices at the pump impacted consumers most as the cost of gasoline was 2.9 percent higher versus the prior 1.9 percent increase. Gasoline prices have soared 33.3 percent over the past 12 months.

The core US inflation rate, which strips out volatile food and energy prices, advanced 0.1 percent in September, down from the 0.2 percent increase seen during each of the previous two months. The level was the smallest gain since March and a bit under expectations. Core consumer goods and services to climb higher included gains of:

• 0.2 percent for medical care services
• 0.1 percent for shelter
• 0.5 percent for transportation

The Labor Department noted that the indexes for airline fares, tobacco, and personal care also increased. However, the cost of clothing declined 1.1 percent — the biggest fall since 1998, after rising sharply for five straight months. Used car prices were down 0.6 percent as well after having advanced in all months but January. New vehicle prices were flat for a third consecutive month.

US inflation rose 3.9 percent in the 12 months ending in September following a previous reading of 3.8 and then 3.6 percent rates in each of the year-over-year gains ending in May, June and July. The annual rate was at 1.1 percent as recently as November and registered a record low of 0.6 percent in October 2010.

The 12-month core rate remained at 2.0 percent — matching the previous setting which was the biggest in nearly three years. The longer term core inflation index is the one most watched by the Federal Reserve. The core index stands at the top of the Fed’s target range which is often cited from 1.5 to 2.0 percent.

"The headline data, it appeared to be pretty much on target. Our response is that we are seeing inflation pressure slowly build up in the economy," Reuters quoted Fred Dickson, Chief Market Strategist at D.A. Davidson & Company in Lake Oswego, Oregon.

"While the (monthly) core rate was only up 0.1 percent, it still has pushed the core level up to 2 percent which is at the top end of the Fed’s targeted zone for no action. So the economy has basically strengthened to the point where we are seeing companies pass along inflation increases and at some point the Fed has to take notice of what is happening in terms of inflation."

US Labor Department inflation data on a 12-month basis and between March and September follows:

September 2011 Consumer Prices – Gains (percent)

The US Labor Department has scheduled the October 2011 Consumer Price Index data release for November 16, 2011 at 8:30 AM Eastern Time. Current and historic CPI files are used as the core data in the Inflation Calculator.

The US Labor Department said consumer prices rose 0.4 percent in August after surging 0.5 percent in July. The increase was double the level of what many analysts’ expected. While gasoline prices rose at a more modest 1.9 percent rate in August versus the 4.7 percent jump in the previous month, food prices ticked up 0.5 percent after increasing 0.4 percent in July.

Federal Reserve Chairman Ben Bernanke last week said rising commodity prices had lifted inflation, but continued his and the Reserve’s stance that it would moderate over the coming months.

"Higher gasoline and food prices translated directly into increased inflation for consumers, and in some cases producers of other goods and services were able to pass through their higher costs to their customers as well. In addition, the global supply disruptions associated with the disaster in Japan put upward pressure on motor vehicle prices. As a result of these influences, inflation picked up significantly; over the first half of this year, " Bernanke said September 8 in a speech at the Economic Club of Minnesota.

"However, inflation is expected to moderate in the coming quarters as these transitory influences wane. In particular, the prices of oil and many other commodities have either leveled off or have come down from their highs. Meanwhile, the step-up in automobile production should reduce pressure on car prices. Importantly, we see little indication that the higher rate of inflation experienced so far this year has become ingrained in the economy."

The core US inflation rate, which strips out volatile food and energy prices, rose by an expected 0.2 percent in August to match the prior month. Core consumer goods and services that advanced include gains of:

• 1.1 percent for clothes,
• 0.9 percent for used cars,
• 1.1 percent for airline fares,
• 0.5 percent for tobacco,
• 0.3 percent for medical care services and
• 0.2 percent for both shelter and transportation.

US inflation rose 3.8 percent in the 12 months ending in August after having climbed 3.6 percent in each of the year-over-year gains ending in May, June and July. The level was at 1.1 percent as recently as November and hit a record low of 0.6 percent in October 2010.

"The 12-month change in the all items index edged up to 3.8 percent after holding at 3.6 percent for three months, while the 12-month change for all items less food and energy reached 2.0 percent for the first time since November 2008," the US Labor Department said in its Consumer Price Index (CPI) report. "The energy index has risen 18.4 percent over the last year, while the food index has increased 4.6 percent."

The 12-month core rate of 2.0 percent — the biggest in nearly three years, compares to the 1.8 percent reading in the previous month. The longer term core inflation index is the one most watched by the Federal Reserve. The core index stands at the top of the Fed’s target range which is often cited from 1.5 to 2.0 percent.

“The continued rise in inflation in August is another reason to suspect that the Fed will shy away from a further round of quantitative easing for the time being, even though the incoming data on the real economy continues to disappoint,” CNNMoney.com quoted Paul Ashworth, chief U.S. economist for Capital Economics.

US Labor Department inflation data on a 12-month basis and between February and August follows:

August 2011 Consumer Prices – Gains (percent)

The US Labor Department has scheduled the September 2011 Consumer Price Index release for October 19, 2011 at 8:30 AM Eastern Time. Current and historic CPI files are used as the core data in the US Inflation Calculator.

Consumer prices rose 0.5 percent in July, led by higher food and energy prices. The US Labor Department on Thursday reported the higher-than-expected level, which was more than twice the rate some economists’ expected and markedly higher than June’s 0.2 percent decline when energy costs had retreated.

"The gasoline index rebounded from previous declines and rose sharply in July, accounting for about half of the seasonally adjusted increase in the all items index. The food at home index accelerated in July and also contributed to the increase, as dairy and fruit indexes posted notable increases and five of the six major grocery store food groups rose," the US Labor Department said Thursday in its monthly Consumer Price Index (CPI) report.

Energy prices increased 2.8 percent in July after a 4.4 percent drop in June and a 1.0 percent drop in May. Food prices rose 0.4 percent after a 0.2 percent gain in the prior month and a matching 0.4 percent increase in May.

The so-called core US inflation rate, which excludes volatile food and energy prices, was up 0.2 percent in July after two straight months of 0.3 percent increases. Core price advances included 1.2 percent for clothes, 0.7 percent for used cars, and 0.3 percent for both shelter and medical care.

The CPI report is "showing some continued firmness in prices," Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York, was quoted on Bloomberg. "There’s not a lot of improvement in the labor market, and given what’s going on with economic growth, pricing power should weaken further. Ultimately, inflation will moderate, but in the meantime, it remains frustratingly high."

US inflation rose 3.6 percent in the 12 months ending July, matching the year-over-year gain in June and in May. The 12-month core CPI climbed 1.8 percent in July as compared to the 1.6 percent increase in June and the 1.5 percent increase in May.

US Labor Department inflation data on a 12-month basis and between January and July follows:

July 2011 Consumer Prices – Gains (percent )

The Labor Department will release the next round of Consumer Price Index statistics for August 2011 on September 15, 2011 at 8:30 AM Eastern Time. The CPI data is used as the core engine for the Inflation Calculator.

All was not rosy, however, as core US inflation climbed faster than expected due to higher prices in other goods and services. Americans continue to pay more for rent, cloths, used cars and trunks and medical care.

Consumer prices declined 0.2 percent in June, a level that was in line with most forecasts.

"The gasoline index declined sharply in June, falling 6.8 percent. While this decrease was the major factor in the seasonally adjusted decline in the all items index, the index for household energy declined as well. In contrast, the index for all items less food and energy increased 0.3 percent for the second consecutive month. The indexes for shelter, apparel, new vehicles, used cars and trucks, and medical care all continued to rise in June," the US Labor Department reported in its monthly Consumer Price Index (CPI) report. The CPI data is used as the main gauge for tracking US inflation.

"The food index increased as well, although the 0.2 percent rise was the smallest of the year. The index for food at home increased 0.2 percent, with major grocery store food groups mixed. The indexes for fruits and vegetables and for meats, poultry, fish, and eggs both declined, and while the other major grocery store food group indexes all increased, none rose more than 0.6 percent."

Consumer prices advanced 0.2 percent in May.

The so-called core inflation rate, which strips out volatile food and energy prices, rose 0.3 percent in June — the same rate as in May when it had marked the biggest one-month pick-up since July 2008.

"Core inflation… is moving higher at both the retail and wholesale level and the back-to-back readings of 0.3 per cent on the monthly change in core CPI should be particularly troubling for the Fed," Conrad DeQuadros and John Ryding of RDQ Economics said, according to the Financial Times. "The only thing that looks transitory in this inflation report is the drop in energy prices with July’s gasoline prices on track to add 0.2 percentage points to inflation in the month."

US inflation rose 3.6 percent in the 12 months ending June, which was the same year-over-year pace as reported in May. The annual core CPI climbed 1.6 percent as compared to the 1.5 percent increase in May.

US Labor Department inflation data on a 12-month basis and between December 2011 and June 2011 follows:

May 2011 Consumer Prices – Gains (%)

The Labor Department will release the next round of Consumer Price Index statistics for July 2011 on August 18, 2011 at 8:30 AM Eastern Time. The CPI data is used as the core engine for the Inflation Calculator.

Consumer prices rose 3.6 percent in the 12 months ending May 2011 after a 3.2 percent annual reading in April when prices at the pump were rising sharply. The year-over-year pick-up was the largest since October 2008. The 12-month US inflation rate was as low as 1.1% as recently as November. And while gas prices fell last month, they are a strangling 36.9 percent higher than one year ago. Higher food prices burden consumers further.

"The food index rose in May as well. The food at home index repeated its April increase of 0.5 percent as four of the six major grocery store food group indexes increased, with the index for meats, poultry, fish, and eggs rising the most. In contrast, the energy index, which had been rising sharply, declined in May," the US Labor Department said Wednesday in its monthly Consumer Price Index (CPI) report which is used as the main gauge for tracking US inflation.

"The upward trend among the 12 month increases of major indexes continued in May… The energy index has increased 21.5 percent over the last 12 months, the food index has risen 3.5 percent… All of these figures have been rising in recent months."

The so-called core US inflation rate, which strips out the more volatile energy and food prices, rose 1.5 percent over the past year as compared to the 1.3 percent increase in April. The May increase was the highest since January 2010.

The Consumer Price Index was higher on a monthly basis than many analysts expected as well. Consumer prices rose 0.2 percent in May 2011. While down from the 0.4 percent gain in April, many economists’ had forecasted a 0.1 percent increase.

"Slower growth, both here and abroad, appears to be increasingly likely," Jim Baird, chief investment strategist for Plante Moran Financial Advisors, was quoted on MarketWatch. "The various headwinds to the consumer in the US and significant inflationary pressures in many emerging markets, particularly in food costs, are acting as a drag on spending globally."

More surprising was that the core reading showed a monthly increase of 0.3 percent, the biggest one-month gain since July 2008.

"Core inflation pressures are a lot stronger than we’ve been seeing in recent months," Dean Maki, head of U.S. economic research at Barclays Capital in New York, was quoted on Reuters. "This will make the Fed more cautious on any additional actions."

The core US inflation rate rose 0.2 percent in March.

Consumer prices on the 12-month level and between November 2010 and May 2011, as reported by the US Labor Department, are shown below:

May 2011 Consumer Prices – Gains (%)

The Labor Department will release the next round of Consumer Price Index (CPI) statistics for June 2011 on July 15, 2011 at 8:30 AM Eastern Time. The CPI data is used as the core engine for the Inflation Calculator.

Americans are paying more for goods and services for a tenth straight month as consumer prices increased 3.2 percent in the 12 months ending April 2011, the highest figure since October 2008. The annual rate was 1.1 percent as recently as November. The gain was greatly attributed to rising gasoline prices.

"The energy index posted another increase in April as the gasoline index continued to rise, the latter accounting for almost half of the seasonally adjusted all items increase," the US Labor Department said Friday in its monthly CPI report. "The energy index has now risen 19.0 percent over the last 12 months, with the gasoline index up 33.1 percent. The food index has risen 3.2 percent while the index for all items less food and energy has increased 1.3 percent; both figures represent increases over recent months."

When pulling out the more volatile food and energy prices, the so-called core inflation rate rose 1.3 percent over the past year, which was the biggest gain since February 2010. The previous 12-month reading ending in March 2011 registered an increase of 1.2 percent. Still, the core inflation rate remains below the Federal Reserves preferred range of between 1.6 and 2.0 percent.

On a monthly basis, the CPI, the government’s main gauge for tracking US inflation, rose in line with most economists’ expectations. Consumer prices climbed 0.4 percent in April 2011 as compared to the 0.5 percent increase in March.

Energy was again the main stimulate, advancing 2.2 percent with prices at the pump up 3.3 percent. Food costs rose 0.4 percent. Other consumer price increases in April 2011 included new and used vehicles (up 0.7 and 1.2 percent), transportation (up 0.2 percent), medical care (up 0.3 percent), and airline fares. The cost to fly jumped 12.1 percent over the last 12 months.

Excluding the more volatile food and energy prices, the so-called core US inflation rate advanced 0.2 percent in April 2011. That was also inline with most economists’ forecasts. The core inflation rate rose 0.1 percent in March.

"There clearly has been some acceleration, even at the core level," Jim O’Sullivan, chief economist at MF Global Inc. in New York, who accurately forecast the overall April gain, said and was quoted on Bloomberg. "The Fed is happy to see core inflation move back up a bit, but I suspect they’d almost like to see it move a little slower. The numbers are still pretty tame."

Consumer prices on the 12-month level and between October 2010 and April 2011, as reported by the US Labor Department, are shown below:

April 2011 Consumer Prices – Gains (%)

The Labor Department will release the next round of Consumer Price Index (CPI) statistics for May 2011 on June 15, 2011 at 8:30 AM Eastern Time. The CPI data is used as the core engine for the Inflation Calculator.

The Consumer Price Index (CPI), the government’s main mechanism for tracking US inflation, rose in line with most economists’ forecasts. Consumer prices climbed 0.5 percent in March 2011, matching the previous monthly increase which had registered as the largest since June 2009. Food and energy prices during the month rose 0.8 and 3.5 percent, respectively, as compared to increases of 0.6 and 3.4 percent in the prior month.

"Gasoline and food prices continued to rise and together accounted for almost three quarters of the seasonally adjusted all items increase in March. The gasoline index posted its ninth consecutive increase and has now risen 14.4 percent over the last three months," the US Labor Department said. "The household energy index rose as well, with advances in the fuel oil and electricity indexes more than offsetting a decline in the index for natural gas. The food at home index continued to accelerate in March, rising 1.1 percent as all six major grocery store food groups increased."

Over the past 12 months, food prices advanced 2.9 percent while energy costs soared 15.5 percent. The energy index was led by gasoline which jumped 27.5 percent. Prices at the pump were up 5.6 percent in March alone.

Other price increases last month included new and used vehicles, transportation, medical care, and airline fares. For a second straight month, clothing was one of the few areas where American consumers caught a break. Prices dropped 0.5 percent, although that was weaker than February’s negative reading of 0.9 percent which registered as the biggest decline for apparel since July 2006.

Stripping out food and energy costs, the so-called core US inflation rate advanced 0.1 percent in March 2011. That was below expectations as most forecasts pegged the increase at 0.2 percent, matching February and January.

"There are fairly subdued pressures outside of food and energy," Bloomberg quoted Sal Guatieri, a senior economist at BMO Capital Markets Inc. in Toronto, who correctly forecast the core rate. "There is still little appetite on the part of consumers to absorb cost increases and retailers are finding it difficult to pass rising input costs onto consumers, largely because consumer wages are rising very modestly."

As mentioned, US inflation rose 2.7 percent over the past year — the biggest year-over-year gain since December 2009, and up from the 2.1 percent 12-month level in February and the 1.6 percent in the year to January. The core US inflation rate, which is closely monitored by the Federal Reserve, rose 1.2 percent over the past 12 months. That compares to the previous 1.1 percent. The core CPI remains below the Federal Reserves preferred range of between 1.6 and 2.0 percent.

"The Fed is not going to see inflation as a threat so they have the freedom to keep interest rates low longer," said David Wyss, chief economist at Standard & Poors Ratings Services in New York, according to Reuters. "But core inflation is creeping up from its lows six months ago, so the Fed is going to end its extraordinary measures.

September 2010 through March 2011 and 12-month consumer prices as reported by the US Labor Department follow:

March 2011 Consumer Prices – Gains (%)

The Labor Department’s Consumer Price Index (CPI) for April 2011 is scheduled for release on May 13, 2011, at 8:30 a.m. (ET). The CPI data is used as the core engine for the US Inflation Calculator.