U.S. consumer prices surged in February, culminating in the largest annual increase in 40 years, and inflation is poised to accelerate further in the months ahead as conflict between Russia and Ukraine drives up commodities costs.

The consumer price index (CPI) increased 0.8 percent last month after gaining 0.6 percent in January, the U.S. Labor Department said on Thursday.

The CPI increase was within expectations but nonetheless a sign the price increases were accelerating, driven by rising prices for gasoline, food and housing.

In the 12 months through February, the CPI shot up 7.9 percent, the biggest year-on-year increase since January 1982.

That followed a 7.5 percent jump in January and was the fifth straight month of annual CPI readings north of 6 percent.

Inflation has way overshot the Federal Reserve's 2.0 percent target. The U.S. central bank is expected to start raising interest rates next Wednesday to stamp out inflation, with economists expecting as many as seven rate hikes this year.

(With input from Reuters, AFP)