Investing.com - Consumer price inflation in the U.S. rose less-than-expected in August, while prices excluding food and energy costs inched up modestly, official data showed on Tuesday.
In a report, the U.S. Department of Labor said that consumer prices rose by a seasonally adjusted 0.1% in August, below forecasts for a 0.2% increase, after rising by 0.2% in July.
Year-over-year, consumer prices rose at an annualized rate of 1.5% last month, compared to expectations for a 1.6% gain and slowing from 2% in July.
Consumer prices, excluding food and energy costs, inched up 0.1% in August, meeting forecasts. Core consumer prices rose 0.2% in July.
Core CPI increased at annualized rate of 1.8% last month, in line with estimates and up from 1.7% in July.
Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories.
The central bank usually tries to aim for 2% core inflation or less.
Following the release of the data, the U.S. dollar held on to losses against the euro, with EUR/USD adding 0.21% to trade at 1.3361.
Meanwhile, the outlook for U.S. equity markets remained modestly higher. The Dow Jones Industrial Average futures indicated a gain of 0.1% at the open, S&P 500 futures pointed to a rise of 0.1% and Nasdaq 100 futures indicated an increase of 0.1%.
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