Inflation, Gasoline Prices | featured news

In another sign that higher gas prices are squeezing consumers, the government's monthly measure of inflation rose in February at the strongest pace since last April.

Higher gas costs drove U.S. wholesale prices up last month. But excluding the big jump in gas, inflation was mostly tame.

Consumer spending rose less than expected in April as high gasoline prices continued to squeeze household budgets, according to government data on Friday which also showed annual inflation accelerating at its fastest pace in a year.

Inflation pressures remained modest in the month even though gasoline prices edged higher, the government reported.

The 0.7 percent pace in June was slightly faster than expected, but the core inflation measure remained relatively tame.