Data May Ease Fed Inflation Fears; Housing, Auto Costs Offset Rise in Energy Prices; Weekly Earnings Decline
WASHINGTON -- Rising energy costs pushed U.S. consumer prices higher last month, though the increase was partly offset by tame prices for housing and discretionary-spending items.</br></br>The data should provide some comfort to Federal Reserve officials that high oil and commodity prices and the weak dollar aren't leading to higher underlying inflation.</br></br>The consumer-price index rose 0.3% in October, the Labor Department said, matching September's increase. The so-called core CPI, which excludes volatile food and energy prices, advanced 0.2% for a fifth straight month. Unrounded, core CPI increased 0.159%.</br></br>In a separate report, the Labor Department said the average weekly earnings of U.S. workers, adjusted for inflation, fell 0.2% in October, as wages failed to keep up with inflation.</br></br>Consumer prices in October were up 3.5% from a year earlier. Core CPI was up 2.2%. The gap between the two inflation measures could widen as higher energy prices keep pushing up overall inflation while softness in housing and auto prices keep underlying inflation in check.