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U.S. consumer prices increase solidly in August – Metro US

U.S. consumer prices increase solidly in August

People shop at Macy’s Department store in New York
People shop at Macy’s Department store in New York

WASHINGTON (Reuters) – U.S. consumer prices increased solidly in August, but labor market slack is likely to keep a lid on inflation as the economy recovers from the COVID-19 recession.

The Labor Department said on Friday its consumer price index rose 0.4% last month. The CPI advanced 0.6% in June and July after declining in the prior three months as business closures to slow the spread of the coronavirus depressed demand.

In the 12 months through August, the CPI increased 1.3% after gaining 1.0% in July. Economists polled by Reuters had forecast the CPI rising 0.3% in August and climbing 1.2% year-on-year.

(Reporting by Lucia Mutikani; Editing by Alex Richardson)

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