US consumer prices edge up 0.1% in July

[WASHINGTON] US consumer prices rose slightly in July, extending a slow year-over-year rise since April as the Federal Reserve plans an interest rate increase this year, official data showed Wednesday.

The Labour Department said its consumer price index rose 0.1 per cent in July, slowing from a 0.3 per cent gain in June and the smallest monthly increase since April.

Food prices rose 0.2 per cent. Energy prices were up 0.1 per cent, led by a 0.9 per cent rise in gasoline prices that offset declines in other components, including fuel oil.

Excluding food and energy, which tend to be volatile month on month, core CPI also rose 0.1 per cent, down from 0.2 per cent in June.

But on a 12-month basis, consumer prices were up 0.2 per cent, building on a gain since April. Core CPI year-on-year was roughly steady at 1.8 per cent.

The Federal Reserve's target for price stability is 2.0 per cent inflation over the longer term. The central bank's preferred inflation measure, the personal consumption expenditures price index, increased 0.3 per cent in June compared with a year ago, and excluding food and energy, was up 1.3 per cent.

AFP