U.S. consumer prices increased in October after two straight months of declines as the cost of gasoline and a range of other goods rose, a tentative sign that the drag on inflation from a strong dollar and lower oil prices was starting to ease.
The modest rise in inflation last month could offer more support to expectations that the Federal Reserve will raise interest rates next month. The Labor Department said on Tuesday its Consumer Price Index increased 0.2 percent last month, reversing September's 0.2 percent drop.
In the 12 months through October, the CPI advanced 0.2 percent after being unchanged in September. Economists polled by Reuters had forecast the CPI rising 0.2 percent in October and edging up 0.1 percent from a year ago.