US consumer prices accelerate in July

[WASHINGTON] US consumer prices increased more than expected in July, but high unemployment is likely to keep inflation under control, allowing the Federal Reserve to continue pumping money into the economy to aid the recovery from the Covid-19 recession.

The Labor Department said on Wednesday its consumer price index rose 0.6 per cent last month after rebounding 0.6 per cent in June.

In the 12 months through July, the CPI accelerated 1.0 per cent after climbing 0.6 per cent in June.

Economists polled by Reuters had forecast the CPI rising 0.3 per cent in July and gaining 0.8 per cent year-on-year.

REUTERS