Washington, DC, August 30, 2006--Core U.S. consumer prices rose a less-than-expected 0.1 percent in July, but the year-on-year rate of nonfood, nonenergy inflation remained at 2.4 percent, the highest level since September 2002, a Commerce Department report showed on Thursday.
Analysts were expecting a 0.2 percent gain in core consumer prices.
Personal income rose 0.5 in July, with real disposable income climbing 0.3 percent, the government said in the same report.
Overall inflation, as measured by a price index for consumer spending, increased by 0.3 percent last month, reflecting higher energy prices, and followed a revised 0.1 percent rise in June.
Inflation-adjusted spending rose by 0.5 percent, the biggest gain since a matching 0.5 percent advance in December, on a jump in durable goods purchases.
Wage and salary income rose 0.6 percent in July.
The personal saving rate dipped to a negative 0.9 percent, the 16th month in a row the rate had been negative.
