Consumer prices rise 0.1% in September

A drop in gasoline prices tempered inflation for the third straight month in September, the Labor Department said Wednesday.

The consumer price index rose 0.1% after falling 0.2% in August, in line with economists' estimates.

Over the past 12 months, prices have increased 1.7%.

So-called core prices, which exclude the volatile food and energy categories, also ticked up 0.1%. They were unchanged in August . Economists expected a 0.2% increase. Core prices are up 1.7% the past year.

Last month, gas prices fell 1% and airline fares were down 0.5% after tumbling 4.7% in August. Apparel prices also declined.

The drops were offset by a 0.3% rise in both food and prices and shelter costs. Prices for meat, poultry, fish and eggs increased 0.7%, while percent vegetables rose 0.5%.

Inflation has eased in recent months after surging earlier this year, damping speculation that the Federal Reserve might have to raise interest rates sooner in 2015 the anticipated.

"The softer inflation outlook gives more ammunition to those Fed officials who would prefer to wait longer before raising rates," says economist Paul Dales of Capital Economics.