July US Inflation Edges Up 0.1%, Fed Rate Hike Odds Unchanged

US consumer prices rose by 0.1% in July, according to the Labor Department's Bureau of Labor Statistics. This increase follows a 0.4% drop in June, which was the first decline in six years.

The Consumer Price Index (CPI) advanced 3.4% over the past 12 months, after rising 3.5% in June. Excluding food and energy components, core CPI increased 2.5% over the year after climbing 2.6% in June.

Economists had forecast a 0.1% rebound in CPI and a 0.2% rise in core inflation for July.

The US central bank tracks Personal Consumption Expenditures price indexes for its 2% inflation target. Policymakers will still consider August's CPI and employment reports before the September 15-16 policy meeting, where there was a roughly 46% chance of a rate hike beforehand.