Decline in cost of gasoline tempers consumer prices

U.S. consumer prices edged up slightly in September, with the overall increase held back by a third straight monthly decline in gasoline prices. The tiny gain was the latest evidence that inflation remains benign.

Consumer prices rose 0.1 percent after having falling 0.2 percent in August, the Labor Department reported Wednesday. Core prices, which exclude volatile food and energy, also climbed 0.1 percent after no gain in August.

Over the past 12 months, both overall and core prices are up 1.7 percent. The increases are well below the 2 percent target for inflation set by the Federal Reserve. The modest inflationary pressures have allowed the central bank to keep interest rates at record lows to boost the economy.

Regulators OK new rules to enliven housing market

Federal regulators are proceeding with new rules that ease guidelines for banks selling mortgage securities and could mean fewer borrowers will need to make hefty down payments.

The Securities and Exchange Commission voted 3-2 Wednesday to adopt the rules, which six federal agencies have been working on since 2011. The SEC’S two Republican commissioners, Daniel Gallagher and Michael Piwowar, opposed adoption. The Federal Reserve governors approved the rules on a 5-0 vote later in the day. Three other agencies adopted the rules Tuesday.

The regulators are looking to inject more life into the still-recovering housing market.

Expert witness expresses confidence in Detroit plan

Detroit’s plan to get out of bankruptcy is feasible, a court-appointed expert testified Wednesday as the last witness in a historic trial to determine whether the largest city in U.S. history to file for Chapter 9 can get back on its feet.

Martha Kopacz, a Boston-based expert who has participated in hundreds of restructurings, expressed confidence that Mayor Mike Duggan and other officials can execute the city manager’s long-term plan.

– From news service reports