Washington, DC, United States (4E) – Inflation in the U.S. slowed down in July as the consumer price index (CPI) rose 0.1 percent, according to the Labor Department report released Tuesday, driven by lower gasoline prices.
The headline inflation figure for July compares with the 0.3 percent advance in June. Economists had forecast a gain of 0.1 percent. Prices have climbed 2 percent in the past 12 months.
Core inflation, which excludes the energy and food prices, increased 0.1 percent from the previous month, and 1.9 percent from a year ago. Economists had forecast a gain of 0.2 percent on month.
Despite the slowdown price increases, food prices advanced 0.4 percent. Prices for meat, dairy, poultry and fruits and vegetables all rose notably.
Cost of housing costs, and prices for new automobiles, apparel and medical care all edged up 0.3 percent. The increase was offset by a 5.9 percent fall in airline fares, used cars, tobacco and household furnishings.
The moderation in the inflation could mean the Federal Reserve may not increase interest rates soon.