US inflation jumps in July

Rising energy, housing and medical costs pushed US consumer inflation higher in July, which showed the trade war having some impact, according to government data released Friday. The increase was another sign the world’s biggest economy may finally be starting to see inflation in the 11th year of expansion despite slowing growth -- something the Federal Reserve has been waiting to see.

And while President Donald Trump insists punitive tariffs are not hurting American consumers, economists warn the trade impact is showing up in the data. The Consumer Price Index jumped 0.3 per cent compared to June, the Labor Department reported, and accelerated to show a 1.8 pc increase for the 12 months ended in July.

Energy costs surged 1.3 pc last month and shelter costs posted another 0.3 pc increase as rents remain under pressure amid tight supply of housing. Food prices were flat, but medical care services rose 0.5 pc, including a 1.7 pc jump in health insurance, according to the report.