US consumer inflation remains mutes

CNC
Added On August 13, 2017

U.S. consumer prices rose only slightly in July, despite the Federal Reserve's decision to raise interest rates.
   
The Labor Department on Friday said that the Consumer Price Index (CPI), a main gauge of inflation, edged up 0.1 percent on a seasonally adjusted basis in July, compared to zero growth the previous month.
   
On a year-on-year basis, the index increased 1.7 percent, slightly higher than the 1.6 percent growth in June.
   
Excluding the volatile food and energy categories, so-called core CPI went up 0.1 percent in July.
   
The muted inflation pressure might complicate the Fed's interest rate hike decisions. 
 
Some Fed officials expected the inflation will rise in the future with the tightening labor market and supported the central bank to continue to raise interest rates gradually.
   
Despite the weak inflation, the Fed is expected to start to winding down its 4.5-trillion-U.S. dollar balance sheet in September.