U.S. consumer prices up 0.6 pct in July

CGTN

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U.S. 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 by 0.6 percent last month after rebounding 0.6 percent in June. In the 12 months through July, the CPI accelerated 1.0 percent after climbing 0.6 percent in June. Economists polled by Reuters had forecast the CPI rising by 0.3 percent in July and gaining by 0.8 percent year on year.

Core CPI, which means excluding volatile food and fuel costs, viewed by policy makers as a more reliable gauge of price trends, rose by 0.6 percent from the prior month, the biggest jump in almost three decades, after a 0.2-percent increase in June, according to Bloomberg.

(With input from Reuters)