An increase in food and energy costs pushed overall consumer prices higher last month, but fears of deflation are still alive, Reuters reported.

The core Consumer Price Index (CPI) was flat in August, the U.S. Department of Labor announced today, quelling expectations of a 0.1 percent gain.

The core CPI, which excludes food and energy prices, rose 0.1 percent in July.

However, analysts don’t expect the Federal Reserve to announce new measures to ease monetary policy as a result of the new report.

“It keeps alive the possibility that the trend could turn negative over the next year or two, but the numbers are not weak enough to encourage them to start a new purchasing program next week,” said Jim O’Sullivan, chief economist at New York-based MF Global.

The 0.3 percent overall CPI was driven by higher food and energy prices, as another report indicated consumer sentiment is at its weakest level in more than a year.

Energy prices rose 2.3 percent in August after a 2.6 percent increase in July. Food costs, which fell 0.1 percent in July, rebounded with an August gain of 0.2 percent.

The CPI rose 1.1 percent in the 12 months ending in August, following a 1.2 percent increase the previous month.

“We expect the Fed to formalize the bias toward easing,” said Yelena Shulyatyeva, an economist at BNP Paribas in New York. “But they will probably wait until November to initiate balance sheet expansion.”