US consumer prices up slight 0.1% in August

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US consumer prices up slight 0.1% in August
FILE - In this Aug. 29, 2019, photo shoppers wait in long lines at Costco in Davie, Fla. On Thursday, Sept. 12, the Labor Department reports on U.S. consumer prices for August. (AP Photo/Brynn Anderson, File)

WASHINGTON (AP) — Consumer prices slowed in August, rising by a slight 0.1%, reflecting a big drop in the cost of gasoline and other energy products.

The Labor Department says the tiny increase in its consumer price index followed a much bigger 0.3% rise in July which had been driven by a jump in energy prices. With energy costs falling in August for a third month out of the past four, the overall price increase slowed leaving consumer prices rising a modest 1.7% over the past year.

Core inflation, which excludes volatile food and energy costs, rose 0.3% last month and 2.4% over the past year.

The Federal Reserve has worried that inflation has been rising too slowly, citing this issue as one of the reasons it cut interest rates in July.