Consumer Prices Head Higher; Gasoline Costs Climb 0.9%

U.S. consumer prices rose modestly in March as falling electricity costs countered higher gasoline prices, boosting the view the U.S. Federal Reserve has room to provide more support for the economy if needed. 

The Labor Department said on Friday its Consumer Price Index  increased 0.3 percent after advancing 0.4 percent in February. That was in line with economists' expectations. 

The U.S. Federal Reserve has said it will probably hold interest rates super low into 2014 to help the economy, which is limping back from the 2007-2009 recession.

Amid recent signs of weakness in the labor market, investors are betting the Fed could unleash further monetary stimulus to boost growth, although comments by Fed officials this week suggested the central bank is on hold as it waits to see whether the recovery gains traction.