US consumer prices unchanged in July
WASHINGTON — U.S. consumer prices were unchanged in July as a big drop in gasoline and other energy prices kept inflation under control.
The Labor Department said Tuesday the flat reading for overall inflation followed a 0.2 per cent gain in June. Energy prices fell by the largest amount in five months. Core inflation, which excludes volatile energy and food, edged up 0.1 per cent in July, the smallest increase in four months.
The Federal Reserve has an inflation target of 2 per cent annual increases. While core inflation has risen 2.2 per cent over the past 12 months, overall inflation is still well below the Fed’s target, rising just 0.8 per cent in the past 12 months. The Fed has left interest rates unchanged after a single rate hike last December.
At its last meeting, the Fed noted that risks to the economic outlook had diminished, opening the possibility of a rate hike later this year. Federal Reserve Chair Janet Yellen delivers a major policy speech at a conference in Jackson Hole, Wyoming, next week and economists are hoping she will provide clues about the Fed’s intentions.