US consumer prices rose by just 0.1% in January as energy prices tumbled sharply for the second straight month.
The Labor Department said that when volatile food and energy costs were excluded, core prices rose by 0.2% for a fourth straight month. The figures were broadly in line with expectations.
A pick-up in producer price inflation last week had led to fears that the rate would be higher, and that the Federal Reserve could increase the pace of interest rate rises as a result.
But today's report showed that energy prices dropped 1.1% last month, with petrol down 2% and fuel oil down 5%.
The annual inflation rate in January was 3%, or 2.3% excluding food and energy prices.
