US consumer prices rise less than expected in July

The Labor Department reported the U.S. consumer price index (CPI) increased 0.1 percent m-o-m in July after flat performance in May. Over the last 12 months, the CPI rose 1.7 percent y-o-y last month after advancing 1.6 percent y-o-y in the prior month. Economists had forecast the CPI to gain 0.2 percent m-o-m last month and 1.8 percent y-o-y in the 12-month period.

According to the report, the indexes for shelter (+0.1 percent m-o-m), medical care (+0.4 percent m-o-m), and food (+0.2 percent m-o-m) all rose in July, while the energy index (-0.1 percent m-o-m) declined slightly in July, recording its third consecutive monthly decline.

Core CPI excluding volatile food and fuel costs increased 0.1 percent m-o-m in July, the same as in June. In the 12 months through July, the core CPI rose 1.7 percent after gaining 1.7 percent in the year through June. Economists had forecast the core CPI to rise 0.2 percent m-o-m and 1.8 percent y-o-y last month.