Consumer Prices Edge Up as Home Costs Fall

Washington, DC, Oct. 15, 2009–Consumer prices drifted higher in September,led by higher prices for cars, energy and medical care that offset the first declines ever recorded in residential rents and home-ownership costs, the Labor Department reported Thursday.

The consumer price index rose a seasonally adjusted 0.2% in September. The core CPI — which excludes volatile food and energy prices — also increased 0.2% in September on a seasonally adjusted basis.

The increases were a tenth of a percentage point higher than expected by economists.

In the past year, the CPI has fallen 1.3%, while the core rate has risen 1.5%. Prices for food fell 0.2% in the past year, the first decline in more than 40 years.