U.S. Consumer Prices Show Weak Rise

Core consumer prices rose at rates that are among the slowest in modern times despite efforts by retailer to lure consumers back to the shops with low prices.

The cost of living in the United States rose only slightly in October according to official statistics released on Oct. 17, as the effects of the economic downturn continued to be felt by shoppers.

Core consumer prices rose at rates that are among the slowest in modern times despite efforts by retailer to lure consumers back to the shops with low prices.

The Labor Department's consumer price index rose 0.2% during the month after a 0.1% increase in September.

Economists had expected a stronger increase of 0.3%, which although low, would have pointed to a stronger pick up in economic activity.

"An increase in the energy index was the major factor," the department said.

"The gasoline index rose for the fourth month in a row and accounted for almost 90% of the all items increase."

Stripping away volatile food and energy costs the index remained flat for the third month in a row.

Copyright Agence France-Presse, 2010

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