Consumer spending increased slightly in March as rising prices for food, gasoline and other products boosted spending figures, the Associated Press reported. But though consumer spending rose 0.4 percent in March, once inflation was removed, spending rose by only 0.1 percent, according to a Commerce Department report.

Consumer spending is being watched closely, because it makes up two-thirds of U.S. economic activity.

A price gauge tied to consumer spending rose 0.3 percent in March, triple the 0.1 percent rise in February. Core inflation, which excludes food and energy costs, was 0.2 percent and core prices were up 2.1 percent from the year-ago period, higher than the government’s preferred 1 to 2 percent increase.

In other economic news, the Labor Department reported that claims for unemployment benefits rose to 380,000 in the week ended April 26, up 35,000 from the week before. The four-week moving average of new claims fell last week to 363,750 from a revised 370,250 the previous week.

A separate report from employment consulting firm Challenger, Gray & Christmas Inc. showed that U.S. companies’ planned layoffs rose 68 percent to 90,015 last month, up from 53,579 in March and up 27 percent from a year earlier. Most of the announced job cuts came from the financial sector, followed by telecommunications and transportation.