US consumer prices and costs excluding food and energy both rose 0.2 per cent in August, according to a Labour Department report today.
The department said its core consumer price index, an inflation gauge that strips out volatile food and energy costs, rose 0.2 per cent in August, matching a 0.2 per cent rise in July, which followed four straight months of 0.3 per cent increases.
Overall consumer prices were up 0.2 per cent after a 0.4 per cent gain in July.
Energy prices increases slowed substantially, climbing by a seasonally adjusted 0.3 per cent in August after a 2.9 per cent surge in July. Overall transportation costs, which included lower airline fares and new vehicle costs, rose 0.2 per cent after a 1.6 per cent rise in July.
But apparel costs, rose by 0.9 per cent after a 1.2 per cent decline in July. A key measure of housing costs also moderated, as owner's equivalent rents rose 0.3 per cent in August after an 0.4 per cent increase in July.
For the 12 months ended in August, core consumer prices have risen 2.8 per cent, in line with forecasts, compared to 2.7 per cent for the 12 months to July.
Overall consumer prices rose 3.8 per cent in the 12 months ended in August, compared with 4.1 per cent for the July period and Wall Street forecasts of 3.9 per cent.