Consumer Prices Rise, but Underlying Inflation Is Benign WASHINGTON - U.S. consumer prices rose modestly in September but there was little sign of underlying inflation in the economy, which should give the Federal Reserve scope to maintain its monthly bond purchases. The Labor Department said on Wednesday its Consumer Price Index increased 0.2 percent last month as energy prices rebounded, after edging up 0.1 percent in August. It had advanced 1.5 percent in August. Economists polled by Reuters had expected consumer prices to rise 0.2 percent last month and increase 1.2 percent from a year ago. The benign inflation environment should allow the Fed to stay the course on its monthly bond purchases as it tries to stimulate the economy through low interest rates. Officials from the central bank are expected to keep their monthly $85 billion bond purchasing program in place when they conclude a two-day meeting later on Wednesday. Stripping out the volatile energy and food components, the so-called core CPI nudged up 0.1 percent, rising by the same margin for a second consecutive month. That took the increase over the past 12 months to 1.7 percent after rising 1.8 percent in August. Last month, inflation was lifted by a 0.8 percent rise in energy. That accounted for about half of the rise in the CPI last month. Food prices were flat in September. That was the weakest reading since May. Within the core CPI, housing and medical care costs advanced, maintaining a recent trend. Reporting by Lucia Mutikani; Editing by Andrea Ricci