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US consumer price growth unchanged for July

US consumer price growth unchanged for July

U.S. consumer prices did not rise in July due to a sharp drop in the price of gasoline, bringing the first significant sign of relief for Americans who have watched inflation rise over the past two years.

The consumer price index (CPI) was unchanged last month after advancing 1.3% in June, the Labor Department said on Wednesday in a closely watched report that nevertheless showed core inflationary pressures remain elevated as the Federal Reserve considers whether to take another super big interest. rate hike in September.

Economists polled by Reuters had forecast a 0.2% rise in monthly CPI in July after a roughly 20% drop in gasoline prices. Prices at the pump jumped in the first half of this year because of the war in Ukraine, reaching a record average of more than $5 a gallon in mid-June, according to motorist group AAA.

U.S. consumer prices are soaring due to a number of factors, including snarled global supply chains, massive government stimulus at the start of the COVID-19 pandemic, and Russia’s invasion of Ukraine.

Food is one component of the CPI that remained elevated in July, rising 1.1% last month after rising 1.0% in June.

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