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US inflation tame despite food price rises

Consumer prices in the United States rose a bare 0.1 per cent in July despite strong gains in food costs, the Labor Department reported on Tuesday (Aug 19).

WASHINGTON: Consumer prices in the United States rose a bare 0.1 per cent in July despite strong gains in food costs, the Labor Department reported on Tuesday (Aug 19).

The slowdown in consumer inflation after three months of faster gains left the year-on-year consumer price index (CPI) up 2.0 per cent, a level the Federal Reserve's monetary policy makers have regarded as non-threatening.

Food prices were up 0.4 per cent in the month, continuing a high pace of increases since February which are hitting American shoppers in the wallet. Food costs were 2.5 per cent higher than a year ago.

But offsetting that has been a fall in energy prices, with gasoline prices now 0.8 per cent down from a year ago. CPI was up 0.1 per cent for the month and 1.9 per cent over 12 months.

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