WASHINGTON, Nov. 17 (UPI) -- Consumer prices climbed a shallow 0.2 percent in October, putting the annual rate of inflation at 1.2 percent, the U.S. Bureau of Labor Statistics reported.
Core consumer prices that exclude the more volatile categories of food and energy were unchanged for the third consecutive month, as the annual rate of core price inflation dropped from 0.8 percent to 0.6 percent, the government said.
The annual rate of inflation remains far below the U.S. Federal Reserve's target rate of 2 percent. Fed Chairman Ben Bernanke said a month ago that "inflation can be too low as well as too high."
In early November, the Fed announced a $600 billion program to purchase long-term treasury bonds in six months. The program, which only began last week, is intended to add liquidity to the financial system, which could allow prices to rise.
In part the plan is intended to do just that, as rising prices prompt consumers and businesses to spend quickly, rather than wait.
In October, energy prices rose 2.6 percent, a sharp climb from 0.7 percent in September. Food prices rose 0.1 percent compared with a month ago.
On an annual basis, energy prices are up 5.9 percent, while gasoline prices are up 9.9 percent, October to October. Fuel oil prices are up 14.5 percent from a year ago and 4.7 percent from September, the report said.
