The increase in overall consumer prices was the largest in nine months but one closely-watched measure suggested underlying price pressures remained tame.

Wall Street rallied on the news, with investors looking to end the string of sessions in the red since last week.

Costs for used cars and trucks also jumped last month, reversing declines in September, but new auto prices fell for the second month in a row, according to the Labor Department report.

The Consumer Price Index rose 0.3% in October, matching analyst expectations and posting the biggest gain since January.

The gasoline index jumped 3% compared to September and prices for electricity gained 1.7%, offsetting falling prices for food and natural gas services.

Compared to October of last year, the index rose 2.5%, up from the 2.3% annual gain recorded in September.

But when erratic food and fuel prices are stripped out, the “core” CPI rose by a slower 0.2% over September, also matching analyst expectations.

And over the last 12 months, the core index slowed to 2.1%, down a tenth from September’s reading.

This was despite a record 4.9% annual gain in the cost of appliances, spurred higher by a 9.9% increase in the cost of washing machines, which are subject to President Donald Trump’s steep import duties.

Calming inflation fears

The slower year-on-year gain in the core CPI could calm Wall Street fears that the Federal Reserve will be more aggressive about raising interest rates.

With unemployment near a 50-year low and job creation continuing unabated, the Fed has projected four more rate increases before the end of 2019.

Prices for used cars and trucks rose 2.6% and the cost of shelter also grew, offsetting decreases for clothing and new cars.

Ian Shepherdson of Pantheon Macroeconomics said the data remained “calm, with no real evidence of broad-based pressures in either direction.”

And Chris Low of FTN Financial said the data defy the more pessimistic forecasts, including from the former chairman of the Federal Reserve.

“We keep hearing inflation is upon us, the latest in this Alan Greenspan interview, in which he claims, ‘we are moving into the very early stages of inflation acceleration.’ And yet, the actual inflation news keeps surprising to the downside,” Low said.

In a separate report on Wednesday, the Labor Department also said worker pay failed to keep pace with inflation in October, rising by a tenth of a percentage point less than CPI — resulting in a net loss employee earnings of 0.1% for the month.