Consumer prices up modestly

Thursday, Oct. 16, 2003 | 9:43 a.m.

WASHINGTON -- Consumer prices rose by a modest 0.3 percent in September for the second month in a row, mostly reflecting higher gasoline prices that put a dent in motorists' wallets. At the same time, production at the nation's factories, mines and utilities rebounded.

The Labor Department's latest reading today on the Consumer Price Index, the government's most closely watched inflation barometer, was slightly stronger than the 0.2 percent rise that economists were forecasting and should ease somewhat Federal Reserve policy-makers' concerns about deflation, an economically dangerous and widespread weakness in prices.

Separately, the Federal Reserve reported that industrial production rose by a solid 0.4 percent in September, a turnaround from the disappointing 0.1 percent dip registered in the previous month. The performance in September matched economists' forecasts.

At factories, output jumped by 0.7 percent in September led by an increase in automobile production; production at mines was flat and output as gas and electric utilities dropped by 2.2 percent.

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