US consumer prices rise modestly

WASHINGTON: US consumer prices rose slightly in July, but a solid increase in the cost of shelter suggested inflation was probably stabilizing enough to support expectations the Federal Reserve will raise interest rates this year.

The Labor Department said on Wednesday its Consumer Price Index edged up 0.1 percent last month as gasoline and food prices increased marginally. July's increase in the CPI was a slowdown from the 0.3 percent gain in June. It was the sixth straight month of increase in the CPI.