AlHijjah 28, 1435, Oct 22, 2014, SPA -- U.S. consumer prices rose slightly in September as energy costs fell for a third consecutive month, the government reported Wednesday, indicating a weak inflation environment that should allow the Federal Reserve (Fed) to keep interest rates at historic lows well into 2015. The Labor Department said its consumer price index (CPI) rose 0.1 percent last month after declining 0.2 percent in August. Economists expected September prices to be flat. Energy prices fell broadly, with gasoline costs dropping 1 percent after plunging 4.1 percent the previous month. Food prices rose 0.3 percent after a 0.2 percent advance in August. Excluding volatile energy and food costs, "core" CPI rose 0.1 percent in September after being flat the previous month. Housing costs increased 0.3 percent last month after rising 0.2 percent in August. The housing index was up 3 percent in the last 12 months, the largest gain since early 2008. Prices for new vehicles and clothing were flat in September, while airline fares declined for a third consecutive month. In the 12 months ending in September, CPI rose 1.7 percent. Over the past 12 months, core CPI also rose 1.7 percent. Both year-over-year CPI measures were significantly below the Fed 2 percent target. Weak inflation and a recent global equities sell-off could see the U.S. central bank in no hurry to begin increasing its key interest rate, which it has kept near zero percent since late 2008. Financial markets now expect the first interest-rate increase in the fourth quarter of 2015 instead of the second quarter.
