Although out-of-control inflation is not a current danger to the economy, analysts said the acceleration justifies an interest rate increase by the Federal Reserve at its Nov. 10 meeting - which would be the fourth such increase this year to ensure inflation doesn't become a problem.

The government's most closely watched inflation measure, the Consumer Price Index, increased 0.2 percent in September, up from a 0.1 percent rise in August, the Labor Department reported Tuesday.

Excluding energy and food prices, which can swing widely from month to month, "core" prices rose 0.3 percent in September. That followed a 0.1 percent increase in August and marked the largest gain since April.

Last month's advance in core prices mostly reflected a sharp increase in lodging costs, not a widespread acceleration in the prices of many other goods and services, economists noted. Given that, September's increase in core prices rings no alarm bells but bears watching, analysts said.

The overall CPI figure, which showed a 0.2 percent increase in September, matched economists' expectations. The 0.3 percent rise in core prices, however, was slightly above the 0.2 percent increase some economists were forecasting.

The CPI report "keeps the Fed on track for raising interest rates again in November," said Lynn Reaser, chief economist at Banc of America Capital Management.

The government also reported Tuesday that people on Social Security will get a 2.7 percent increase, or an average of an extra $25, in their monthly checks starting in January.

The cost-of-living adjustment was announced by the Social Security Administration.

In another report, housing construction fell 6 percent in September to a seasonally adjusted annual rate of 1.898 million units, the Commerce Department said. The decline, steeper than analysts expected, followed a 1.8 percent rise in August. Housing permits, however, rose a solid 1.8 percent last month.

Federal Reserve Chairman Alan Greenspan said in a speech Tuesday that the record level of debt carried by American households and soaring home prices do not appear to represent serious threats to the economy.

In the CPI report, energy prices actually dropped by 0.4 percent in September after a 0.3 percent decline in August. Natural gas prices fell sharply last month, and electricity prices were flat.

That helped offset price increases for fuel oil and gasoline.