US price growth relents in June

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US consumer prices were little changed in June as higher food costs were offset by a decline in petrol, official figures have shown.

Consumer prices rose by 0.2% in June, down from the surprisingly large 0.7% jump in May, the Labor Department said.

While June's figure was more than many analysts had forecast they said the increase was not enough to boost fears that interest rates would have to rise.

The US Federal Reserve has left interest rates on hold in past months.

In June, it left its main borrowing cost at 5.25%, the eighth time in a row they were left unchanged.

According to the Labor Department, petrol prices dropped by 1.1% in June, helping push energy costs down by 0.5% overall.

Food costs increased by 0.5%.

Core inflation, which excludes the volatile energy and food sectors, increased by just 0.2%.