Consumer prices rose by the most since March

Consumers paid more for gas, food and clothes last month, pushing prices up by the most since the spring. The Labor Department says the Consumer Price Index rose 0.5% in July. That followed a drop of 0.2% in June. Gas prices accounted for much of the swing: They increased a seasonally adjusted 4.7% after dropping sharply in June. The core index, which excludes volatile food and energy, rose 0.2%. That’s below the 0.3% rise in each of the previous two months. Over the past 12 months, prices have risen 3.6%. That’s equal to the 12-month increase in May and June. But core prices over the past 12 months have gone up 1.8%—the largest increase in two years. Clothing prices rose 1.2% in July. That was the third straight increase, reflecting higher cotton prices. Over the past 12 months, clothing costs have risen 3.1%, the largest annual increase since July 1992. Higher rents and pricier hotel rooms have pushed the cost of housing up by the most in three years. Food prices rose 0.4%. The cost of meat, dairy, coffee, and fruits and vegetables all increased.