Consumer Price Index Shows Slight Increase
The Labor Department released the Consumer Price Index (CPI) Tuesday morning, showing an increase of 0.1 percent, in-line with expectations.
Increases in food and rent were offset by a drop in energy prices. This followed an increase of 0.3 percent in June, and puts the trailing 12-month CPI at two percent.
This tame reading could bolster the Federal Reserve to keep interest rates low for a while. At an earlier July Senate Banking Committee hearing, Fed Chairwoman Janet Yellen said, “high degree of monetary policy accommodation remains appropriate."
Yellen also stated that the recovery was not complete and that inflation was running below the Fed's two percent target rate.
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