Washington - The US inflation rate was 0.3 per cent in October compared to the previous month, according to the Labour Department Wednesday.

The largest increases came in car sales and energy prices. Consumer prices rose 0.2 per cent in September and have fallen 0.2 per cent in the last year amid a deep recession.

Excluding more volatile food and energy prices, the inflation rate was 0.2 per cent in October.

The low rate continues to give the US Federal Reserve the freedom to keep interest rates at record lows as the economy begins a slow recovery. (dpa)