The Labor Department reported that consumer prices rose 0.1 percent last month and are just 1.1 percent higher than a year ago, meaning that Fed Chief Ben Bernanke at least got the title right -  Monetary Policy Objectives and Tools in a Low-Inflation Environment – for his speech today (more on that later as markets try to digest all of this morning’s data).

The cost of energy rose 0.7 in September after hefty monthly increases during the two prior months and, given that prices for other items such as housing and apparel continue to fall, deflation-averse economist are probably happy to see crude oil at over $80 a barrel.

Monthly and annual prices changes by category are shown below with the familiar story being that rising food, energy, and health care costs are offset by declining prices for imported goods,  housing (as represented mostly by the nefarious owners’ equivalent rent) being the proverbial “fly in the ointment” for monetary policy.

Excluding food and energy, prices were unchanged for the second month in a row, falling short of analysts expectations for an increase of 0.1 percent and adding to deflation fears.