Consumer price index rises 0.3%

Spurred by rising energy prices, the consumer price index increased 0.3% in October, marking the second consecutive increase of that size, according to the Department of Labor. The CPI has increased 3.6% over the first 10 months of the year, compared to a 2.5% gain in all of 2006. Meanwhile, the core CPI, which excludes food and energy costs, increased 0.2% in October for the fifth consecutive month. The core CPI is up 2.2% for the year, which is above the 1% to 2% comfort zone that has been spoken about by the Federal Reserve. Energy prices increased 1.4% in October, marking the largest increase since May. Energy costs have risen at a 12.3% annual rate this year, more than four times the 2.9% gain recorded for 2006. Food prices rose 0.3%, down from a 0.5% gain recorded during the previous month.