July CPI Rise Keeps Fed Rate Cut Debate Alive

US consumer prices rose by 0.1% in July, meeting economists' expectations and keeping the Federal Reserve's options open ahead of its September policy meeting.

The Consumer Price Index (CPI) increase was modest, following a 0.4% decline in June. On an annual basis, consumer prices increased 3.4% in July, easing slightly from the 3.5% rise recorded in June.

Core inflation, excluding food and energy, rose 0.2% during the month after remaining unchanged in June. Core inflation increased 2.5% over the 12 months through July, compared with 2.6% in June.