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Consumer prices steady
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September 16, 1997: 8:52 a.m. ET
Price index rose just 0.2 percent in August, matching July's figures
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NEW YORK (CNNfn) - Consumer prices increased slightly in August, held back by lower apparel prices and airline fares, the U.S. Department of Labor said Tuesday.
The Consumer Price Index was up just 0.2 percent in August to a seasonally adjusted level of 160.8, the same rise it posted in July. Economists had expected the figure to push 0.3 percent higher.
The core rate, which excludes the often volatile food and energy sectors, rose just 0.1 percent, falling short of predictions of a 0.2 percent increase.
For the year, consumer prices have advanced at a seasonally adjusted annual rate of 2.2 percent, a figure that points to low inflationary pressures, said David Ressler, economist at Nomura Securities.
"I think we can look forward to several more months, if not years, of this kind of performance," he said. "This is a very terrific inflation report. It's exactly the type of thing we all like to see."
Food prices increased 0.4 percent in August, with the grocery component advancing 0.6 percent, largely due to higher fresh fruit and vegetable prices.
The energy index was up 1.7 percent, with petroleum-based energy up 4.3 percent while energy services fell 0.8 percent.
The housing component edged 0.1 percent higher after increasing 0.2 percent in July. A decline in utilities prices had a moderating effect on that figure.
In the transportation sector, which was up 0.6 percent in August, gasoline prices pushed 5.4 percent higher after declining the previous five months. New vehicle prices were off 0.1 percent and airline fares fell 4.7 percent.
Apparel and upkeep prices declined 1 percent in August, due to a slower introduction of higher-priced fall and winter clothing, the Labor Department said. 
-- Randy Schultz
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U.S. Labor Department
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