US Consumer Prices Rose 0.6% in July

Consumer prices in the US rose more than expected in July, but rising unemployment will likely keep inflation under control, allowing the Federal Reserve to continue pumping liquidity into the economy to help it recover from the recession caused by the Covid-19 pandemic.

The US Labor Department said its consumer price index rose 0.6% last month, after a 0.6% rebound also in June.

In the twelve months to the end of July, the consumer price index rose 1% after a 0.6% increase in June. Economists polled by Reuters expected the index to rise 0.3% in July and rise 0.8% year-on-year.