Investing.com - Consumer price inflation in the U.S. rose broadly in line with market expectations in July, while prices excluding food and energy costs trailed forecasts, official data showed on Tuesday.
In a report, the U.S. Department of Labor said that consumer prices rose by a seasonally adjusted 0.1% last month, meeting estimates, after rising 0.3% in June.
Year-over-year, consumer prices rose at an annualized rate of 2% in July, in line with expectations and down from 2.1% in June.
Consumer prices, excluding food and energy costs, inched up by a seasonally adjusted 0.1% last month, compared to expectations for a 0.2% gain. Core consumer prices rose 0.1% in June.
Core CPI increased at annualized rate of 1.9% in July, in line with forecasts and unchanged from a month earlier.
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.
Following the release of the data, the U.S. dollar added to gains against the euro, with EUR/USD shedding 0.29% to trade at 1.3324, compared to 1.3355 ahead of the data.
Meanwhile, the outlook for U.S. equity markets was higher. The Dow pointed to a gain of 0.25% at the open, the S&P 500 indicated a rise of 0.25%, while the Nasdaq 100 signaled an increase of 0.15%.