Investing.com – Consumer price inflation (CPI) rose less than expected in July, though the reading for annualized core CPI remained steady as forecast, official data showed on Friday.
In a report, the U.S. Bureau of Labor Statistics said that consumer prices rose 0.1% in July from a month earlier, compared to forecasts for 0.2% increase and a 0.1% gain in the prior month.
Year-over-year, consumer prices increased 1.7% last month, below forecasts for a 1.8% increase although slightly higher the 1.6% advance seen in June.
Consumer prices, excluding food and energy costs, increased by a seasonally adjusted 0.1% last month, compared to estimates for a 0.2% increase and June’s 0.1% advance.
Core CPI increased at an annualized rate of 1.7% in July, in line with consensus and the previous month’s increase.
Core prices are viewed by the Federal Reserve (Fed) 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.
After the report, EUR/USD was trading at 1.1809 from around 1.1764 ahead of the release of the data, GBP/USD was at 1.2996, compared to 1.2980 previously, while USD/JPY was at 108.92 from 109.21 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 93.04, compared to 93.34 ahead of the report.
Meanwhile, U.S. stock futures pointed to a slightly higher open. The Dow futures edged forward 13 points or 0.06%, the S&P 500 futures advanced 3 points, or 0.13%, while the Nasdaq 100 futures inched up 2 points, or 0.04%.
Elsewhere, in the commodities market, gold futures traded at $1,296.04 a troy ounce, compared to $1,291.98 ahead of the data, while crude oil traded at $48.49, compared to $48.48 prior to the release.