U.S. consumer prices climb 0.5% in March (by Jeffry Bartash)

WASHINGTON (MarketWatch) - U.S. consumer prices rose 0.5% in March, with higher gas and food costs accounting for three-quarters of the increase, according to Labor Department data. So-called core prices, which strip out volatile food and energy costs, rose a lesser 0.1%, the government reported Friday. Economists surveyed by MarketWatch had forecast CPI to rise 0.5% overall, with a 0.2% increase in the core rate. Consumer prices are up 2.7% over the last 12 months. In a separate report, Labor said real average hourly earnings of U.S. workers fell by 0.6% in March, owing to the increase in higher consumer prices. Real average hourly earnings of American workers, which take inflation into account, have declined 1.0% in the past 12 months.