Consumer Prices Up 0.1%

Washington, DC, August 15, 2007—The consumer price index rose 0.1 % in July, while the core index, which excludes food and energy, increased 0.2 %, according to an announcement from the Labor Department. It was the smallest gain in the CPI in eight months.

Economists were expecting of 0.1% in the CPI

The CPI increase in July followed an increase of 0.2% in June. The index is up 2.4% since June of 2006. The core index is up 2.3% during the period.

Consumers paid 2.4 % more for goods and services in July verses the same period last year, compared with a 12-mointh increase of 2.7% in June. The 12-month rise in core prices matched the prior two months as the smallest in more than a year.

Energy prices fell1 %, the most since January. Gasoline prices dropped 1.7%. Food prices rose 0.3% after a 0.5% increase in June. Housing costs rose 0.2% after rising 0.3%. Owner's equivalent rent, which makes up 30% of the core CPI, increased 0.2% for a second month.

Medical-care costs rose 0.6% after increasing 0.2%. Clothing prices climbed 0.4% following a 0.6% decline. Auto prices were unchanged for a second month.