yes I got the same problem. The problem is that 127.0.0.1 as hostname is not accepted by mysql while localhost is good.
Please use localhost instead of 127.0.0.1 plain ip address
try on centos 6.3:
mysql -h 127.0.0.1 -u root -p
ERROR 2003 (HY000): Can't connect to MySQL server on '127.0.0.1' (110)
but:
mysql -h localhost -u root -p
mysql>
good luck!