Consumer prices in the United States increased by 0.5 percent in July, reflecting higher costs for gasoline and other energy products, the Labor Department reported Tuesday.

The rise in consumer prices, measured by the department's Consumer Price Index (CPI), was the biggest gain in three months. The CPI is a barometer of inflation closely watched by the government.

Data released by the department showed that energy costs jumped by 3.8 percent in July. Gasoline prices surged by 6.1 percent, while costs for natural gas rose by 3.8 percent. Electricity prices fell 0.3 percent in the same month.

In the past year, energy costs increased 14.2 percent while gasoline prices rose by 19.5 percent.

Food costs in July went up 0.2 percent. While excluding volatile energy and food, the core Consumer Price Index edged up by just 0.1 percent in July, marking the third consecutive monthly increase of a modest 0.1 percent.

The core CPI, which is often seen as a better indicator of inflation, was helped in July by a drop of one percent in new car prices, the biggest decline since January 1975.

The gains in the CPI and the core CPI were the highest since April. In June, the CPI was flat while core prices edged up 0.1 percent.

Data also showed that the CPI has risen at an annual rate of 3.5 percent so far this year and the core rate of inflation is rising at an annual rate of 2.2 percent.

Source: Xinhua