ST. LOUIS, Oct. 8 (UPI) -- Federal Reserve Governor Ben Bernanke said Friday in St. Louis surging oil prices have not driven up core inflation rates.
Bernanke said the central bank's credibility as an inflation fighter helps explain why surging oil prices haven't driven up the core inflation rate.
Core inflation is the inflation rate excluding food and energy items. In August, the core consumer price index rose 0.1 percent.
Speaking at a conference in St. Louis, Bernanke said the Fed's record of reducing inflation over the last 25 years has helped check inflation expectations even in the face of economic surprises.
That is demonstrated by "the fact that the oil shock this year has evidently not been translated into a rise in core inflation," Bernanke said at the conference organized by the Federal Reserve Bank of St. Louis.
