US consumer prices rose slightly last month as gas costs increased at a slower pace. Overall, the figures showed that inflation remains mild.
The Labor Department says the consumer price index rose 0.2 per cent in July, after a 0.5 per cent gain in June. Gas prices rose only 1 per cent last month, after jumping 6.3 per cent in June. In the past 12 months, the index has increased 2 per cent.
Excluding food and gas costs, which are volatile, core prices also rose 0.2 per cent. They have increased just 1.7 per cent in the past year. That's below the Federal Reserve's annual inflation target of 2 per cent.
Tame inflation has enabled the Fed to pursue low-interest rate policies in an effort to stimulate growth. Higher inflation would pressure the Fed to raise rates.
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