15 September 2006, 17:03  US August CPI up 0.2 pct as expected, core CPI also up 0.2 pct as expected

US inflation rose at a slower pace in August than in the prior month, the Labor Department said Friday. The department said its consumer price index rose 0.2 pct in August, in line with expectations. It had risen by 0.4 pct in July. Core inflation which excludes energy and food, also rose by an expected 0.2 pct in the month. On an unadjusted basis, consumer prices have risen 3.8 pct in the past 12 months, slightly slower than the prior month's annual pace. Core inflation, however, has risen 2.8 pct in the past year. That's the fastest yearly gain since the 12 months leading up to November 2001. Using seasonally adjusted figures, headline inflation has risen at a 3.6 pct annualised rate over the preceding three months. Core inflation has risen at a 3 pct annualised rate over the June to August period. Energy prices rose 0.3 pct in August after jumping 2.9 pct in July. Food prices rose 0.4 pct in August after rising 0.2 pct in the prior month. In a separate report, real average weekly earnings fell 0.5 pct in August.

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