U.S. consumer prices climbed more than expected in February as energy costs bounced back from a January drop and food prices soared, according to a U.S. Labor Department report released today. Core prices that exclude food and energy met forecasts.

Reuters reported that the Consumer Price Index increased 0.4 percent after a 0.2 percent January rise; core prices were up 0.2 percent following a 0.3 percent January gain.

On a year-over-year basis, core prices were up 2.7 percent last month, the same rise as in January. The results are likely to keep Federal Reserve policy-makers wary about potential inflation when they hold a two-day policy-setting meeting next Tuesday and Wednesday, where they are expected to again keep the federal funds rate unchanged.

Food prices continued to rise sharply, up 0.8 percent in February after a 0.7 percent January increase. It was the largest rise in overall food prices since a matching increase in April 2005.

Analysts said the prices data, which had been hotly anticipated, shed less light than hoped on economic conditions. Some think a slumping housing market might raise chances of an interest-rate cut later this year.