US consumer prices rise marginally

The Consumer Price Index rose 0.1 percent in October on a seasonally adjusted basis, the U.S. Department of Commerce said Thursday. On a 12-month basis prices rose 2.2 percent, which is slightly higher than the 2 percent target the Federal Reserve has set as a red flag indicating prices are rising too fast. Numerically, food and fuel prices canceled each other out in the month with food prices up 0.2 percent in October and the energy price index down 0.2 percent. The gasoline price index, which had risen 16.6 percent from July to September settled back sharply, falling 0.6 percent in October. Natural gas prices for U.S. households also fell, dropping 0.2 percent. In contrast, the price index for electricity rose 0.5 percent in the month, the largest monthly gain in over a year. Fuel oil prices rose 1.1 percent in the month. Core prices, which eliminate food and fuel items and which are closely watched by the central bank, rose 0.2 percent, the department said.