Consumer prices edge up 0.1 percent in July

WASHINGTON (AP) — U.S. consumer prices rose in July at the slowest pace in five months, held back by a drop in gasoline prices.

The Labor Department says consumer prices edged up a seasonally adjusted 0.1 percent last month, after larger gains of 0.3 percent in June and 0.4 percent in May. The price restraint came from falling gasoline prices. All energy prices were down 0.3 percent and this helped offset a 0.4 percent rise in food costs, which have been pushed up by adverse weather including a drought in California.

Over the past 12 months, consumer inflation is up 2 percent while inflation excluding food and energy is up 1.9 percent. Price gains around 2 percent are considered moderate and meet the 2 percent inflation target set by the Federal Reserve.