The so-called core consumer price index increased 0.2% after rising 0.3% four straight months.
The figures underscore the slow and frustrating nature of the battle against inflation.
Rising mortgage rates are dashing hopes for a swift recovery in the housing market.
The contract rate on a 30-year fixed mortgage eased for a fourth week to 6.44%.
Economists also see more moderate payroll growth than they did a month ago.
The delay in easing monetary policy has big implications for the U.S. economy.
Productivity rose at a 0.3% annualized rate after a 3.5% gain in the prior period.
The news interrupted a run of strong demand that fueled optimism for a soft landing.
Housing, insurance and commodity prices have been among the contributors.
The unemployment rate fell to 3.8%, while participation rose.