The Labor Department announced on Wednesday the U.S. consumer price index (CPI) rose 0.4 percent m-o-m in February, following an unrevised 0.3 percent m-o-m gain in the previous month.

Over the last 12 months, the CPI increased 1.7 percent y-o-y, accelerating from +1.4 percent y-o-y reported for the period ending in January. This was the highest reading since February 2020.

Economists had forecast the CPI to increase 0.4 percent m-o-m and 1.7 percent y-o-y in the 12-month period.

According to the report, a 6.4 percent m-o-m jump in the gasoline index accounted for over half of the seasonally adjusted increase in the all items index in February. In addition, the energy index surged 3.9 percent m-o-m and the food index rose 0.2 percent m-o-m.

Meanwhile, the core CPI excluding volatile food and fuel costs edged up 0.1 percent m-o-m in February after an unrevised flat m-o-m figure in the previous month.

In the 12 months through February, the core CPI rose 1.3 percent compared to an unrevised 1.4 percent surge for the 12 months ending January.

Economists had forecast the core CPI to increase 0.2 percent m-o-m and to jump 1.4 percent y-o-y last month.