16 November 2005, 16:52  U.S. CPI rises 0.2% on shelter, medical, food prices

U.S. consumer prices increased more than expected in October, rising 0.2% on higher shelter, food and medical care prices, the Labor Department said Wednesday. Energy prices fell 0.2% as gasoline prices dropped 4.5%. Natural gas prices, however, rose 14%, the most in nearly five years. Energy prices are up 29.5% in the past year. The core consumer price index, which excludes volatile food and energy prices, also rose 0.2%, breaking a string of five straight 0.1% readings. The 0.2% gain in the CPI was slightly more than the 0.l% expected by economists surveyed by MarketWatch. The 0.2% gain in the core rate was as expected. In September, the CPI had risen 1.2% on higher energy costs, while the core rate had risen 0.1%. The CPI is now up 4.3% in the past year, down from last month's 4.7% pace, but still far above the Federal Reserve's comfort zone. Core prices are up 2.1% in the past year, the most since May.

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