U.S. Economy: Consumer Prices Rise More Than Forecast

Still, increases went beyond food and fuel, including gains in clothing, airline fares and education, likely intensifying discussions among Fed policy makers about how quickly to shift toward raising rates.

``What we are seeing is a lot of commodity-price spillover'' into other items, said Richard DeKaser, chief economist at National City Corp. in Cleveland, who correctly forecast the increase in core prices. ``Numbers like this increase the hand of hawks'' at the Fed who argue that rates need to rise to quell inflation, he said.