Washington DC | Annual inflation in the US rose for the first time in 13 months to 3.2 per cent, driven by higher costs in food, energy, rent and caregiving. However, the modest increase might be enough to persuade the Federal Reserve to leave interest rates unchanged next month.

Annual core inflation, which removes food and energy costs, dipped to 4.7 per cent from 4.8 per cent, giving economists enough confidence to talk about deflation and a softer approach from the Fed.

Reuters