The Labor Department said its core Consumer Price Index, excluding food and energy, increased by 0.2% - the largest gain since October 2009 - after rising 0.1% in December. The increase, which was above economists' expectations for a 0.1% gain, was driven by rises in the cost of clothes, housing and airline fares. Overall prices rose 0.4% after increasing by the same margin in December. Food and energy accounted for over two-thirds of the rise in overall CPI. Economists had expected headline CPI to rise 0.3% last month. The report came a day after the US government reported that core wholesale prices increased at their fastest pace in more than two years in January, raising concerns among some investors that inflation might be building up. Despite the slightly above expectations rise in January, the consumer inflation report tended to support the Federal Reserve's views that inflation remains too low. The report showed prices for new vehicles and used cars declining. Surging commodity prices have put global central banks on the alert for inflation. In the 12 months to January, core inflation rose 1% after rising 0.8% in December. In a separate report, the Labor Department said initial claims for state unemployment benefits increased 25,000 to a seasonally adjusted 410,000, partially reversing the previous week's big drop. Economists had forecast that claims would rise to 400,000. The claims data cover the survey period for part of the government's employment report for February. The four-week moving average of unemployment claims - a better measure of underlying trends - rose 1,750 to 417,750 last week.