White House National Economic Council Director Kevin Hassett said prices for goods such as beef and eggs are falling, but September consumer price data show that overall inflation still requires policy attention.
Hassett said on Monday: "If you look at the previous three months, inflation seemed fully under control, but now it appears that more work may be needed."
Data released last week showed that consumer prices rose at the fastest pace in five months in September, and a gauge of underlying price pressures also increased more than expected.
The consumer price index rose 0.6% month over month, while the core measure excluding food and energy rose 0.3%.
Hassett said in an interview: "This either means there has been some kind of interruption in the downward trend, or it is just a temporary fluctuation."
Federal Reserve Chairman Kevin Warsh last week did not dispel market expectations that the Fed will keep interest rates unchanged at its meeting at the end of this month.
During a discussion at the International Monetary Fund annual meetings, Warsh reiterated that the Fed will achieve price stability, but did not comment on monetary policy or the U.S. economic outlook.
Hassett said he respects the Fed's independence, saying Warsh will "do what he believes is right."
Hassett said: "People are very excited that the economy is performing so well, and they have increased spending. Of course, this is exactly what the Fed needs to pay attention to."
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