US consumer prices rose by 0.2% last month, a US government report showed this afternoon, but the core inflation rate rose at its fastest pace in five months.
A 0.4% drop in energy prices in September, the third straight monthly decline, helped temper the rise in the consumer price index, the Labor Department said.
While food prices held steady, the core CPI, which strips out volatile food and energy costs to provide a better picture of underlying inflation trends, climbed 0.3%, the biggest gain since April.
Economists on Wall Street had expected both the overall index and the core measure to rise by 0.2%. But analysts had said the report would present an understated view of the inflation environment because it would not reflect a recent sharp rise in oil prices, an increase that has already been reflected in higher petrol costs.
Separate figures showed that US home building took a surprisingly steep 6% dive in September, more than reversing a modest gain the previous month. Builders started work on a seasonally adjusted annual rate of 1.9 million homes in September, down from 2.02 million the previous month, the Commerce Department said.
