Fed's inflation target elusive as July consumer prices up only 0.1%

Washington

THE cost of living in the US rose in July at the slowest pace in three months, casting doubt on how quickly inflation will return towards the Federal Reserve's goal.

The consumer price index climbed 0.1 per cent after a 0.3 per cent gain the month before, a Labor Department report showed on Wednesday in Washington. The median forecast of 78 economists surveyed by Bloomberg projected a 0.2 per cent increase. Excluding food and fuel, costs also rose less than projected.