US consumer prices unchanged in October

WASHINGTON (AP) — U.S. consumer prices were unchanged in October as a fourth straight decline in gasoline costs helped to keep inflation at bay.

The steady reading for inflation last month followed a tiny 0.1 percent increase in September and a 0.2 percent drop in August, the Labor Department said Thursday. Energy prices fell 1.9 percent last month while food costs edged up a slim 0.1 percent.

Core inflation, which excludes volatile energy and food, rose 0.2 percent in October. For the past 12 months, overall inflation is up 1.7 percent while core inflation is up a similarly modest 1.8 percent.

Both gains are well below the Federal Reserve's 2 percent inflation target, giving the central bank leeway to keep interest rates low to boost the economy without worrying about inflation.

"Inflation remains very much in check despite the pickup in the economy over the past few quarters," said Jim Baird, chief investment officer for Plante Moran Financial Advisors. "Weaker global commodity demand, a stronger U.S. dollar and lackluster wage growth have all helped to keep inflationary pressures in check."