The Consumer Price Index (CPI) increased by 0.3 percent in September, according to data released on Wednesday by the U.S. Bureau of Labor Statistics.

The increase was consistent with Wall Street's prediction, which was also 0.3 percent.

Energy and food indexes had the most gains. The food index posted a 0.4 percent increase, with dairy products increasing by 1.2 percent. The energy index rose 2 percent, with gasoline up 2.9% on a seasonally adjusted basis. Electricity was up 0.7% and natural gas up 0.8 percent.

The index for other items was relatively flat, rising 0.1 percent, the smallest increase since March. Apparel declined 1.1 percent after increasing in the last four months, used cars fell 0.6 percent and the recreation indexes decreased by 0.1 percent. Analysts had expected a 0.2% increase.

Economists said that the increases suggested that inflation was under control, but future increases could prompt government action.

While the core rate was only up 0.1 percent, it still has pushed the core level up to 2 percent which is at the top end of the Fed's targeted zone for no action. So the economy has basically strengthened to the point where we are seeing companies pass along inflation increases and at some point the Fed has to take notice of what is happening in terms of inflation, said Fred Dickson, chief market strategist of D.A. Davidson & Co., according to Reuters.

The index has increased by 3.9 percent in the last 12 months.