U.S. consumer prices rose in July, but the intensifying trade war with China will probably prompt the Federal Reserve to tighten monetary policy in the coming months.
The consumer price index accelerated to 1.8 percent in the year ended July after rising 1.6 percent in June. That was above analysts’ projections of 1.7 percent.
The month-on-month reading showed a 0.3 percent increase in July, moving in line with forecasts, following a 0.1 percent surge in June.
The rise was buoyed by a 2.5 percent rebound in gasoline prices, the Labor Department data showed.
The annual core CPI rose to 2.2 percent in July, the highest level in six months, from 2.1 percent in June, while edged up 0.3 percent on the monthly basis.
As of 12:50 GMT, the dollar index continued to trade lower at 97.16, extending
its drop for a third straight session.