WASHINGTON (MarketWatch) - U.S. consumer prices rose slightly in July, led by highest costs of food and housing, but the overall pace of inflation cooled slightly after a sharp runup earlier in the year. The consumer price index rose a seasonally adjusted 0.1% in July, the Labor Department said Tuesday. Food prices rose 0.4%, but energy costs declined for the first time since March to keep price pressures under wraps. Energy prices fell 0.3%. The core CPI, which excludes volatile food and energy costs, also increased 0.1%. Economists surveyed by MarketWatch had expected the CPI to increase by 0.1% overall and by 0.2% on a core basis. Consumer prices have risen an unadjusted 2% over the past 12 months, down slightly from June. The core rate has risen 1.9% in the same span, unchanged from the prior month. The Federal Reserve views core prices as a more accurate barometer of underlying inflationary trends. Real or inflation-adjusted hourly wages, meanwhile, were unchanged for the second straight month. Real hourly wages have either been flat or lower for five straight months, so consumers don't have much more to spend despite an improving labor market. Over the past 12 months inflation-adjusted hourly wages have risen a scant 0.3%. Americans are working somewhat longer hours, however, to bring home a bit more money.
