U.S. consumer prices rose in February amid higher food and energy prices while underlying inflation crept up modestly, suggesting that inflation still remains an upside risk.

A separate report showed industrial production rose more than expected last month as manufacturing grew and utilities output jumped due to colder-than-average temperatures.

Today’s reports support expectations that the Federal Reserve will hold official interest rates steady when it meets next week and also maintain its tightening bias.

The consumer-price index rose 0.4% in February, the U.S. Labor Department said today, compared to January’s 0.2% rise. The core CPI, which excludes food and energy, increased 0.2% after rising 0.3% in January.

Unrounded, the CPI rose 0.371% last month. The core CPI advanced 0.241% unrounded.

The inflation data were broadly in line with Wall Street forecasts. Economists had called for or a 0.3% CPI increase and 0.2% core rise, but economists had braced for a higher CPI reading following Thursday’s report of a 1.3% monthly rise in the producer-price index.

The CPI figures support the prevailing view among economists that the Federal Reserve will keep official interest rates unchanged next week and maintain its inflationary bias.

The Fed has kept its federal-funds rate steady at 5.25% since last summer.

Energy prices increased by 0.9% in February, reversing some of the previous month’s 1.5% decline. Gasoline prices rose 0.3%. Natural gas prices swelled 5%, while electricity prices held steady. Food prices, meanwhile, increased 0.8%, the largest rise since the same reading in April 2005.

The transportation index was 0.1% higher, as new vehicle prices fell 0.1% and airline fares rose 0.9%. Medical-care prices increased 0.5% following January’s 0.8% surge.

Housing, which accounts for 40% of the CPI index, rose 0.4%, doubling January’s gain. Rent climbed by 0.4% and owners’ equivalent rent rose 0.3%. Lodging away from home was up 0.1%. Clothing prices increased 0.5%, while education and communication rose 0.3%.

In a separate report, the Labor Department said the average weekly earnings of U.S. workers, adjusted for inflation, decreased 0.3% in February. Average hourly earnings rose 0.4%. Average weekly hours decreased 0.3%.

Meanwhile, U.S. industrial production rose 1% in February, the Federal Reserve said today, as colder temperatures boosted utilities output. January output was revised to a 0.3% drop from a 0.5% decrease. Capacity utilization rose to 82.0% in February, from a revised 81.4% in January; that number had been reported as 81.2%. The 1972-2005 average was 81.0%.

The report topped forecasts. Economists had expected industrial production to rise 0.3% in February, with a capacity utilization rate of 81.3% for the month.