WASHINGTON, Nov 15, 2007 (AFP) - US consumer prices increased 0.3 percent in October, partly as energy costs surged, the government reported Thursday.

The rise last month in the consumer price index, a key inflation gauge that tracks retail prices across America, was in line with the expectation of most analysts.

Core prices, which strip out volatile food and energy costs, rose 0.2 percent and were also in line with most forecasts, the monthly Labor Department survey showed.

A sharp 1.4 percent rise in energy costs, the biggest increase in energy costs in five months, stoked up consumer prices.

Some economists are concerned that rising crude oil prices, which analysts believe could soon broach 100 dollars a barrel, could cause a spike in inflationary pressures.

Analysts say record-high oil prices have yet to feed through to the gasoline pump, however.

A 0.6 percent rise in medical costs and a 0.3 percent increase in food and beverage prices also pushed up overall retail prices. Transportation costs gained 0.4 percent while food costs rose 0.3 percent.

The Federal Reserve cut short-term interest rates last month, citing concerns that economic growth will likely cool in coming months.

The central bank also noted fears about rising energy and commodity prices saying they could renew inflationary risks, but economists said the housing slump and credit squeeze likely outweigh inflation risks at present.

The Fed cut its fed funds rate by a quarter of a percentage point to 4.50 percent on October 31, following a more aggressive half a percentage point cut on September 18.

Over the past 12 months, overall consumer prices have increased 3.5 percent and core prices have risen 2.2 percent, the Labor Department said.