The Labor Department announced on Friday the U.S. consumer price index (CPI) rose 0.4 percent m-o-m in August after increasing 0.6 percent m-o-m in the previous month.

Over the last 12 months, the CPI increased 1.3 percent y-o-y last month, following an unrevised 1.0 percent m-o-m gain in the 12 months through July. This was the highest reading since March.

Economists had forecast the CPI to gain 0.3 percent m-o-m and to climb 1.2 percent y-o-y in the 12-month period.

According to the report, a surge in the used cars and trucks index (+5.4 percent m-o-m, its largest monthly increase since March 1969) was the largest contributor to the August increase in headline CPI. The indexes for gasoline (+2.0 percent m-o-m), shelter (+0.1 percent m-o-m), recreation (+0.7 percent m-o-m), and household furnishings and operations (+0.9 percent m-o-m, its largest monthly increase since February 1991) also made a solid positive contribution. In addition, the food index rose marginally (+0.1 percent m-o-m) in August after falling in July.

Meanwhile, the core CPI excluding volatile food and fuel costs also rose 0.4 percent m-o-m in August after an unrevised 0.6 percent m-o-m increase in the previous month.

In the 12 months through August, the core CPI surged 1.7 percent, accelerating from 1.6 percent in the 12 months ending July. This was the highest rate since March.

Economists had forecast the core CPI to edge up 0.2 percent m-o-m and to rise 1.6 percent y-o-y last month.