WASHINGTON (Reuters) - U.S. consumer prices rose in July and the underlying trend continued to strengthen, pointing to a steady increase in inflation pressures that keeps the Federal Reserve on track to gradually raise interest rates. The Labor Department said on Friday its Consumer Price Index advanced 0.2 percent, the bulk of which was due to a rise in the cost of shelter, driven by higher rents. The CPI rose 0.1 percent in June.
In the 12 months through July, the CPI increased 2.9 percent, matching the increase in June.
Excluding the volatile food and energy components, the CPI rose 0.2 percent, the same gain as in May and June. ... (full story)