WASHINGTON (NEWSnet/AP) — Inflation in the United States rose in July after 12 straight months of declines, boosted by costlier housing.

But excluding volatile food and energy prices, so-called core inflation rose just 0.2% from June, matching the smallest monthly increase in nearly two years.

The inflation data the government reported Thursday showed that consumer prices increased 3.2% from a year earlier.  That was up from a 3% annual rise in June, which was the lowest rate in more than two years. The July inflation figure remained far below last year’s peak of 9.1%, though still above the Federal Reserve’s 2% target.

The Fed, economists and investors pay particular attention to the core inflation figures for signs of where inflationary pressures might be headed. Thursday’s price data will be among the key barometers the Fed will weigh in deciding whether to continue raising interest rates. 

To compare, there was a 3% year-over-year increase in June, the lowest such figure in more than two years. The trend was fed in part by more expensive gasoline.

In the meantime, rent increases are cooling and used car prices have begun to drop as new vehicle production improves.

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