The underlying pace of US inflation moved a bit slower than expected last month with the advance over the past 12 months the smallest since February 1966, the government said today.
While the overall Consumer Price Index, the most widely used gauge of US inflation, rose 0.3 per cent in August, the so-called core CPI inched up just 0.1 per cent, the US Labor Department said.
Over the past 12 months, the core CPI has risen just 1.3 per cent - the tamest pace in over 37 years.
The report came as Federal Reserve officials prepared to meet to discuss interest-rate policy. The central bank was expected to hold the benchmark overnight lending rate steady at a 45-year low of 1 per cent and reiterate a concern over the potential for an already-low rate of inflation to fall further.The Fed is expected to announce its decision at about 7.15 p.m. Irish time.
Energy costs rose 2.7 per cent last month, the biggest increase since March and the primary factor behind the overall increase in consumer prices. Petrol prices surged 6.2 per cent, the biggest gain since February.
The rise in energy costs kept overall goods prices from falling, but goods prices excluding food and energy dipped a bit. Over the last 12-months, so-called core goods prices have fallen 2.5 per cent, the biggest drop on records dating to 1958.