The Labor Department announced on Wednesday the U.S. consumer price index (CPI) rose 0.6 percent m-o-m in July, the same pace as in the previous month.

Over the last 12 months, the CPI increased 1.0 percent y-o-y last month, following an unrevised 0.6 percent m-o-m gain in the 12 months through June. This was the highest reading since March.

Economists had forecast the CPI to gain 0.3 percent m-o-m and to climb 0.8 percent y-o-y in the 12-month period.

According to the report gasoline index continued to rise in July after climbing in June and accounted for about one quarter of the monthly increase in the seasonally adjusted all items index. The energy index increased 2.5 percent m-o-m in July as the gasoline index surged 5.6 percent m-o-m. This, however, was partially offset by the food index, which fell 0.4 percent m-o-m in July.

Meanwhile, the core CPI excluding volatile food and fuel costs also rose 0.6 percent m-o-m in July after an unrevised 0.2 percent m-o-m increase in the previous month. This was its largest increase since January 1991.

In the 12 months through July, the core CPI surged 1.6 percent, accelerating from 1.2 percent in the 12 months ending June. 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 1.1 percent y-o-y last month.