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Consumer Prices Rise Modestly; Shelter Costs up Solidly

Published 19/08/2015, 15:14
U.S. consumer prices rose slightly in July as gasoline and food prices increased, supporting expectations of an interest rate hike this year. The consumer price index inched up 0.1% last month, marking the sixth straight month of increases. Annual inflation was up 0.2%. It was the second month the annual inflation increased after plunging crude oil prices pushed it into negative territory in January. The Fed is expected to hike rates as soon as September, but monetary tightening is likely to remain gradual, given the subdued inflation outlook.

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