Washington – Consumer inflation, helped by a retreat in gasoline prices, slowed last month after racing ahead at the fastest clip in a quarter-century in September, but in a bad sign for the upcoming home heating season, natural-gas prices rose sharply.
The Labor Department reported Wednesday that consumer prices rose 0.2 percent in October after soaring 1.2 percent in September, when the Gulf Coast hurricanes caused gasoline prices to spike briefly above $3 per gallon.
The easing of overall inflation pressures reflected a 0.2 percent decline in energy costs after a record 12 percent jump in September. Most of that downward pressure came from a 4.5 percent drop in gasoline prices.
However, natural gas, used to heat many homes, went the other way. It surged by 14 percent, the biggest monthly increase in nearly four years.
The government already is forecasting that natural-gas users can expect to see their heating bills rise by 48 percent this winter, or $350 extra for the typical household. People who use home-heating oil will see a 32 percent increase, which also averages to $350 more.
Core inflation, which does not include the volatile food and energy areas, was up by 0.2 percent in October after five straight months of 0.1 percent increases. While the acceleration was slight, some analysts worried it might be the start of more widespread inflation pressures in the economy.
Analysts noted that airline fares were up 1.5 percent in October, while hotel rates jumped 3.5 percent and medical-care costs rose by 0.5 percent, the fastest pace in seven months.
