The Labor Department announced on Tuesday the U.S. consumer price index (CPI) rose 0.6 percent m-o-m in March, following an unrevised 0.4 percent m-o-m gain in the previous month. This was the largest one-month rise in headline CPI since August 2012.

Over the last 12 months, the CPI climbed 2.6 percent y-o-y, accelerating noticeably from +1.7 percent y-o-y reported for the period ending in February. 

Economists had forecast the CPI to increase 0.5 percent m-o-m and 2.5 percent y-o-y in the 12-month period.

According to the report, a surge in gasoline index (+9.1 percent m-o-m) accounted for nearly half of the seasonally adjusted increase in the all items index in March. The natural gas index (+2.5 percent m-o-m) also rose, contributing to a 5.0-percent m-o-m gain in the energy index over the month. In addition, the food index edged up 0.1 percent m-o-m, helped by marginal advances in both the food at home index (+0.1 percent m-o-m) and the food away from home index (+0.1 percent m-o-m).

Meanwhile, the core CPI excluding volatile food and fuel costs increased 0.3 percent m-o-m in March after an unrevised 0.1 percent m-o-m uptick in the previous month.

In the 12 months through March, the core CPI rose 1.6 percent compared to an unrevised 1.3 percent advance for the 12 months ending February.

Economists had forecast the core CPI to increase 0.2 percent m-o-m and to jump 1.5 percent y-o-y last month.