US consumer prices rise slightly

Petrol prices have fallen back from all-time highs

A big fall in the price of fuel in the US helped to dampen consumer price increases in the country during July, official figures have shown.

The Consumer Price Index (CPI), the key measure of inflation, recorded a small increase of 0.1% in the month, according to the US Labor Department.

Stripping out energy and food prices, the core CPI rose by 0.2%.

The data will be a relief to the US Federal Reserve, which has kept interest rates high to curb inflation.

According to the Labor Department, petrol prices fell 1.7% in July, and the 0.1% rise in CPI was the smallest advance since November last year.

Analysts said that the data made it increasingly likely that the Fed would leave interest rates on hold at its next meeting.

"This is pretty good news," said Bob Macintosh, chief economist at Eaton Vance in Boston.

"Inflation is staying under control. It's yet another reason for (the Fed) not to do anything."