Consumer prices rose more quickly than expected in July as gasoline reversed a two-month decline and the cost for rent continued to climb.
The consumer price index for all items was up 0.3% for the month, against expectations for a 0.2% increase. Gasoline rose 2.5% while shelter costs increased 0.3%.
Markets have been watching the inflation data closely for clues about what the Federal Reserve will do in the days ahead. The U.S. central bank is broadly expected to drop its benchmark overnight lending rate another 25 basis points in September after cutting for the first time in 11 years at the July meeting.
Though the CPI numbers came in a bit hotter than expected, it likely won’t be…