US consumer prices up slight 0.1 per cent in July
WASHINGTON — Consumer prices posted a slight gain in July, with higher costs for medical care and clothing offsetting declines for hotel stays and consumer cellphone plans.
The Labor Department said Friday that its consumer price index edged up 0.1 per cent last month after no gain in June and a 0.1 per cent fall in May. Core inflation, which excludes volatile energy and food changes, was also up a slight 0.1 per cent in July.
Both overall inflation and core inflation have risen an identical 1.7 per cent over the past 12 months. That shows that inflation pressures remain well under control. In fact, a separate inflation gauge favoured by the Federal Reserve has been slowing this year, raising concerns that inflation is falling farther from the Fed’s 2 per cent goal.
“Today’s report is just the sort of ammunition the Fed doves need to argue against additional rate hikes this year,” said Chris Rupkey, chief financial economist at MUFG in New York, referring to the group of Fed officials who generally argue for a go-slow approach to hiking interest rates.