U.S. consumer prices accelerate in July

U.S. consumer prices increased more than expected in July, but high unemployment is likely to keep inflation under control, allowing the Federal Reserve to continue pumping money into the economy to aid the recovery from the COVID-19 recession. The Labor Department said on Wednesday its consumer price index rose 0.6% last month after rebounding 0.6% in June. In the 12 months through July, the CPI accelerated 1.0% after climbing 0.6% in June.

U.S. consumer prices increased more than expected in July, but high unemployment is likely to keep inflation under control, allowing the Federal Reserve to continue pumping money into the economy to aid the recovery from the COVID-19 recession.

The Labor Department said on Wednesday its consumer price index rose 0.6% last month after rebounding 0.6% in June. In the 12 months through July, the CPI accelerated 1.0% after climbing 0.6% in June. Economists polled by Reuters had forecast the CPI rising 0.3% in July and gaining 0.8% year-on-year.