U.S. consumer prices increased solidly in August, but labor market slack is likely to keep a lid on inflation as the economy recovers from the COVID-19 recession, Reuters reported. The Labor Department said on Friday that its consumer price index rose 0.4 percent last month. The CPI advanced 0.6 percent in June and July after declining in the prior three months as business closures to slow the spread of the coronavirus depressed demand. In the 12 months through August, the CPI increased 1.3 percent after gaining 1.0 percent in July. Economists polled by Reuters had forecast the CPI rising 0.3 percent in August and climbing 1.2 percent year-on-year.
