Consumers paid more for food and gas last month, although inflation outside those volatile categories was tame.

The Labor Department says the Consumer Price Index rose 0.3 per cent in September , below a 0.4 per cent rise in August. Excluding food and energy, so-called core prices increased 0.1 per cent, the smallest rise since March.

Inflation has worsened this year, after the cost of oil, grains and other commodities spiked in the spring. But economists expect price increases to moderate as weak growth lowers commodity prices.

Food prices rose 0.4 per cent, pushed up by big increases in the dairy, cereals, and fruits and vegetables categories. Gas prices rose 2.9 per cent, driving up energy costs 2 per cent. Clothing prices fell sharply.

A surge in gas prices drove wholesale costs up 0.8 per cent in September , the government said Tuesday. Economists cautioned that the increase largely reflected one-time factors and broader inflation is likely to be modest.


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