Breaking: Inflation ticks up to 3.2 percent

Inflation in the US has risen to 3.2 percent year on year – a slight increase in July compared to June.

The latest consumer price index released Thursday by the Bureau of Labor Statistics found that monthly price increases remained modest.

Inflation grew by 0.2 percent in July – the same rate as in June – which could potentially prevent the Federal Reserve from raising rates again in September.

This monthly increase was in line with forecasts, while the annual rate was slightly below the 3.3 percent forecast.

The annual inflation rate of 3.2 percent is a sharp drop from last June’s peak of 9.1 percent, but is still significantly above the Federal Reserve’s target of 2 percent.

After pausing rate hikes for the first time in 15 months in June, the central bank unanimously decided in July to raise rates again, pushing benchmark borrowing costs to their highest level in more than two decades.

In a long-awaited move, the Fed raised interest rates to between 5.25 and 5.5 percent — a range not seen since early 2001 — as part of its aggressive drive to dampen inflation.

July’s rise in inflation was mainly driven by housing costs, including rent, which accounted for more than two-thirds of the total increase.

This is a breaking news story. More to follow.