US consumer prices rose 0.4 percent in August, driven by higher gasoline costs, government data showed Wednesday.
The Labor Department's consumer price index (CPI) showed a year-over-year decline of 1.5 percent, in a report being monitored for signs of deflation rather than inflation in light of the weak economy.
The report showed a 0.1 percent monthly increase in the "core" CPI, excluding volatile food and energy costs, a figure that some economists say offers hints of future inflation trends.
The core index was up 1.4 percent over the last 12 months, the smallest 12-month increase in the index since February 2004.
The overall CPI was lifted by a 9.1 percent rise in the gasoline index, which accounted for 80 percent of the overall increase in consumer prices. But despite the August increase, the gasoline index has fallen 30.0 percent over the last 12 months.
The CPI report was roughly in line with analyst forecasts for a 0.3 percent increase in overall prices and a 0.1 percent rise in the core CPI.
