Consumer Price Index In-Line,

The Labor Department released the Consumer Price Index (CPI) this morning, showing an increase of 0.1 percent, in-line with expectations. Increases in food and rent where offset by a drop in energy prices. This followed an increases of 0.3 percent in June, and puts the trailing 12 month CPI at 2 percent. This tame reading will likely bolster the Federal Reserve to keep interest rates low for a while. At an earlier July Senate Banking Committee hearing, Fed Chairwoman said a “high degree of monetary policy accommodation remains appropriate." She also stated that the recovery was not complete and that inflation was running below the Fed's 2 percent target rate