US consumer prices rise 0.3% in August, lowest in 7 months

By MARTIN CRUTSINGER
AP Economics Writer

WASHINGTON (AP) — U.S. consumer prices rose a lower-than-expected 0.3% last month, the smallest monthly increase n seven months and a hopeful sign that inflation pressures may be cooling. The Labor Department reported Tuesday that the August gain was down from a 0.5% increase in July and a 0.9% surge in June. It was the smallest increase since a similar 0.3% rise in January. The August slowdown in prices was seen as offering hope that Americans were finally starting to see some relief from a price surge earlier in the year.