NEW YORK: US inflation held steady in July, according to the Labor Department, helped by a downward pull from energy prices.
Matching analyst expectations, the Consumer Price Index rose 0.2 percent on a seasonally adjusted basis, the same as in June and May.
July's increase came despite the fact that food and energy prices were either stable or dropping. The index for all items less food and energy rose 0.1 percent, its slowest rate since March.
Energy prices were down 1.6 percent after rising in the prior four months, reflecting a decrease in gasoline prices. Prices for medical care, new cars and auto insurance all rose.
The index for all items rose only 0.8 percent for the 12 months ending in July, down from 1.0 percent for the same period ending in June.
US monetary policy makers, who are due to meet next month, have set a target inflation rate of 2 percent, making it a key factor in deciding whether or not to increase interest rates.
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