Inflation in the US rose slightly during July, mainly due to rising energy costs, according to the US Labour Department. The consumer price index (CPI), a broad measure of inflationary trends in retail prices, rose 0.2pc in July for the second consecutive month. The so-called core rate, which excludes often-volatile food and energy prices, posted a 0.2pc increase in July, a larger jump than forecast, to leave it up 1.6pc from a year earlier. The overall headline inflation rate was in line with expectations, while the core rate was slightly above the 0.1pc forecast by economists.
On a year-on-year basis, the CPI was up 2.1pc, while the core rate was up 1.5pc, matching the lowest increase in 37 years. For the first seven months of 2003, US consumer prices have risen at a 2.2pc seasonally adjusted annual rate. The core inflation rate is running at 1.2pc for the year. Meanwhile in a separate report, the Federal Reserve Bank of New York said its Empire State Manufacturing Survey of business conditions fell to 10.0 in August from 20.8 in July. //www.fxcentre.com