U.S. Consumer Price Index (CPI) went up modestly in April, led by rising energy and food costs, the Labor Department reported Thursday.

As a main gauge of inflation, the CPI increased 0.3 percent on a seasonally adjusted basis last month, compared with an increase of 0.2 percent in the previous month. Over the last 12 months, the index increased 2 percent before seasonal adjustment.

Energy prices increased 0.3 percent following a dip of 0.1 percent in March, while food costs gained 0.4 percent, the same as the previous month.

Excluding the volatile food and energy categories, the so- called "core" inflation index rose 0.2 percent in April, the same as in March.

Economists monitor core prices to get a sense of broader inflation trend, a key barometer for monetary policy decision of the central bank.

The Labor Department said Wednesday that the Producer Price Index (PPI), a gauge of inflation at the factory gate, rose by the most in one and a half years, signaling the inflation may head for an uptick.

The Federal Reserve has been monitoring the inflation development closely as it has repeatedly stressed that inflation persistently below 2 percent could pose risks to economic performance.