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Consumer Prices Rise for March May Signal Future Interest Rate Increase.

The Boston Globe (Boston, MA)

| April 15, 2004 | This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Robert Gavin

Apr. 15--Consumer prices in March rose at some of the fastest rates in years, signaling a turning point in the economy that forecasts even higher prices for shoppers and higher interest rates for home buyers in coming months.

The Labor Department reported yesterday that its consumer price index, a common measure of inflation, jumped 0.5 percent in March, on top of solid advances in both February and January. Unlike previous months, in which the increases were confined primarily to the energy sector, rising prices in March were spread among a variety of areas, including rents, clothing, and hotel rates.

The so-called "core" inflation rate, which excludes volatile energy and food products, rose at…

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