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WASHINGTON--Consumer prices increased moderately in October, but there is little sign of inflation as the cost of cars, clothes and hotels.

Index of prices for increased consumption of 0.2% last month, the Ministry of labour declared, mainly due to rising gas prices.

But to the exclusion of volatile energy and food categories, the index has remained unchanged for the month of the third line right. In the past year, basic prices increased by only 0.6%, the smallest increase annual since the beginning of the index in 1957.

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Weak economy keeps a lid on prix.Consommateurs facing high unemployment and slow wage growth, retaining their spending.Retailers and other companies do not want to risk losing frugal shoppers by raising prices.

The report provides support for recent moves of the Federal Reserve to stimulate the economy .the Central Bank said earlier this month buy 600 billion in Treasury bonds to reduce interest rates and encourage more borrowing and spending.

This decision was subject of criticism.Many economists Republican leaders said earlier this week that shares risk the Fed triggering runaway inflation.

But many economists said Wednesday report shows that inflation concerns are lost.

"Fears of a potential outbreak of inflation, the Fed's recent movements are heavily exaggerated and are completely out of sync with the reality of highly competitive markets... products and services, says Brian Bethune, an economist at IHS Global Insight.

The US Federal Reserve would like to see prices increase more quickly that they are currently .Lorsqu ' announced binding purchase program, the Central Bank said that inflation is "a little low" at the levels it considers compatible with price stability.

While flat price may seem like a good thing for the buyers, the US Federal Reserve wants to prevent deflation, a widespread and debilitating lower prices and the salaires.Déflation also erodes the value of houses and other assets and makes it more difficult to pay off debts.The United States has not encountered with deflation since the great depression in the 1930s.

"For the moment, data continues to show that the price decreases, not increased, is the concern of the day," Dan Greenhaus, Chief economic strategist at Miller Tabak, said in a note to clients.

There are signs that the base price index can fresh stabiliser.Les housing, which represents more than 40% of the total index rose 0.1% month last .c ' is the first increase since July and only the second this fresh année.Les housing fell 0.2 percent last year.

Increase in last month's accommodation costs was offset by lower prices for cars, clothing and recreation, including cable TV and other video services, toys and sports equipment.

Food prices rose slightly in October, the Department déclaré.Le cost of fruit and vegetables and cereals and bakery products fell while meat products dairy and egg prices.

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