Investing.com - Consumer price inflation in the U.S. fell for the first time in 16 months in August, while prices excluding food and energy costs were flat, official data showed on Wednesday.
In a report, the U.S. Department of Labor said that consumer prices declined by a seasonally adjusted 0.2% last month, compared to estimates for a 0.1% gain, after rising 0.1% in July.
Year-over-year, consumer prices rose at an annualized rate of 1.7% in August, below expectations for a 1.9% reading and down from 2% in July.
Consumer prices, excluding food and energy costs, were unchanged in August from a month earlier, disappointing expectations for a 0.2% gain. Core consumer prices rose 0.1% in July.
Core CPI increased at annualized rate of 1.7% in August, missing forecasts for a gain of 1.9% and down from 1.9% in July.
Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories. The central bank usually tries to aim for 2% core inflation or less.
EUR/USD was trading at 1.2971 following the release of the data, from 1.2959 ahead of the report, while GBP/USD was at 1.6335, compared to 1.6320 earlier.
Meanwhile, U.S. equity markets pointed to a higher open. The Dow 30 indicated a gain of 0.1%, the S&P 500 pointed to a rise of 0.1%, while the NASDAQ 100 indicated an increase of 0.2%.