Washington, October 19--The consumer price index rose 0.2% in September, the highest rate since June, the Labor Department said Tuesday.
The closely watched core index -- which excludes typically volatile food and energy items -- rose 0.3%, the fastest pace since April.
In year-on-year terms, however, the CPI was up 2.5%, down from an increase of 2.8% in August.
The increase in the core index was larger than the 0.2% gain that Wall Street had been expecting, although the overall increase matched expectations. The Labor Department attributed "about three-fourths" of the increase in the core index to a surge in the price of lodging away from home, which climbed 2.9% -- the fastest clip since April.
The numbers were consistent with the Federal Reserve's view that surging oil prices will not cause a rapid increase in inflation. Over the last year, crude-oil prices have risen more than 40%, setting a record of $55.33 a barrel last week.
The report showed that energy prices declined for a third month in a row in September, falling 0.4%. Gasoline prices rose 0.1% after several months of decline. Natural-gas prices fell 3.1% in the biggest decline since April 2003. Food prices were unchanged despite a 2% drop in dairy prices that was the biggest in more than five years.
Housing prices, which account for 40% of the index, rose 0.2%, the same as in August. Transportation prices also rose 0.2%, rebounding after a 0.3% decline in August. Prices of new motor vehicles declined for a third month in a row, falling 0.2%. But medical-care prices accelerated, rising 0.3% after a 0.2% gain in August.
