Prices for many items continued to rise in the US last month, despite a sharp increase in interest rates to stamp out inflation.
The Labor Department said the rate of inflation rose at 3.2% over the year to July, driven by higher food, housing and car insurance costs.
That was up from 3% in June, which was the lowest rate in more than two years.
Analysts had expected the increase in the headline rate, after relatively weak price inflation last year.
The US central bank has raised its benchmark interest rate to more than 5.25% – the highest level in 22 years – in a bid to cool the economy and ease the pressures pushing up prices.
Inflation hit a peak of 9.1% last year, far above the US Federal Reserve’s 2% target.
