U.S. Inflation Virtually Flat
Author: Conor Dougherty</br></br>A key gauge of U.S. inflation has fallen to its lowest level since record-keeping began in 1957, underscoring the continued weakness in the economy.</br></br>Consumer prices rose 0.2% in October compared with September, almost entirely because of higher energy costs, the Labor Department said Wednesday.</br></br>When volatile food and energy are subtracted, prices were unchanged last month--the third straight month in which this so-called core measure of inflation was flat. Compared with a year ago, consumer prices other than food and energy have risen 0.6%.</br></br>The drop in the core measure bolsters the Federal Reserve's case that inflation is so low--below its informal target--that it should resume its purchases of U.S. Treasury bonds to boost the economy.