Traders see US March core CPI up 0.2 pct in auction

NEW YORK, April 17 (Reuters) - Traders were betting on Tuesday that the U.S. government's gauge on core consumer inflation rose about 0.2 percent in March, according to the implied median market forecast of a derivatives auction.

The result on the core rate of the Consumer Price Index (CPI), which excludes volatile food and energy prices, was in line the median forecast among economists polled by Reuters.

The core CPI rose 0.2 percent in February.

The U.S. Labor Department will issue its March CPI data including the core rate at 8:30 a.m. (1230 GMT).

Investors use the auctions to hedge against surprises in the report. Traders also use the auctions to speculate on the outcome.

The economic derivatives auctions run on a system owned by the International Securities Exchange ISE.N, and the trades are cleared by the Chicago Mercantile Exchange CME.N.