Consumer prices little changed in July as fuel costs retreat

Washington

THE US cost of living was little changed in July, a sign that subdued inflationary pressures will give Federal Reserve policymakers reason to keep interest rates low.

It was the first time in five months the Consumer Price Index (CPI) failed to advance and followed a 0.2 per cent gain in June, Labor Department figures showed on Tuesday in Washington. Excluding food and energy, prices rose 0.1 per cent, less than projected.