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U.S. inflation rises 0.1% in July; core prices inch up 0.1%

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Investing.com -

Investing.com - Consumer price inflation in the U.S. rose broadly in line with market expectations in July, while prices excluding food and energy costs trailed forecasts, 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% last month, meeting estimates, after rising 0.3% in June.

Year-over-year, consumer prices rose at an annualized rate of 2% in July, in line with expectations and down from 2.1% in June.

Consumer prices, excluding food and energy costs, inched up by a seasonally adjusted 0.1% last month, compared to expectations for a 0.2% gain. Core consumer prices rose 0.1% in June.

Core CPI increased at annualized rate of 1.9% in July, in line with forecasts and unchanged from a month earlier.

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 added to gains against the euro, with EUR/USD shedding 0.29% to trade at 1.3324, compared to 1.3355 ahead of the data.

Meanwhile, the outlook for U.S. equity markets was higher. The Dow pointed to a gain of 0.25% at the open, the S&P 500 indicated a rise of 0.25%, while the Nasdaq 100 signaled an increase of 0.15%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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