Energy, food push up consumer prices

Rising prices of fresh vegetables and meats contributed to a 0.6 percent increase in food costs, the largest amount since July 2008, the Labor Department reported. 

Federal Reserve officials still don’t expect rising prices — fuel has edged up for the past month because of unrest in North Africa and the Middle East — to have long-term effects on inflation. 

Overall consumer prices increased 2.1 percent in the 12 months ended February, compared with a 1.6 percent year-over-year gain the prior month. The core CPI rose 1.1 percent from February 2010.

Earlier this week, the Fed said it would continue its $600 billion plan of buying back government bonds to provide a boost to the economy. 

The central bank also intends to keep interest rates near zero for an “extended period,” a plan that Fed Chairman Ben Bernanke has consistently reiterated in recent weeks.