Core US inflation strips up by 0.1% Petrol Prices

Core inflation, which strips out food and energy prices, went up by 0.1% in the month, according to official figures.

Food prices rose by 0.2%, while the energy index rose by 0.1% as higher prices for petrol offset other lower energy costs.

 

Over the past 12 months, overall inflation has risen by 0.2%.

Consumer inflation slowed in July following two months of slightly faster gains.

 The slowdown reflected in part the biggest drop in air fares in nearly two decades.

The 0.1% rise in July followed gains of 0.3% in June and 0.4% in May.

The US Federal Reserve has said that it needs to feel "reasonably confident" that inflation is moving back to its 2% goal before beginning to raise US interest rates.

Some economists have forecast that the Fed will start to raise interest rates at its next meeting in September, given that the US unemployment rate has fallen to a seven-year low of 5.3%.