UPDATE 1-U.S. consumer prices rise 0.3 pct in July

Fri Aug 13, 2010 8:51am EDT

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(Adds details on CPI)

WASHINGTON Aug 13 (Reuters) - Higher energy costs helped lift U.S. consumer prices in July, the first rise in four months, according to a government report on Friday that could ease concerns about deflation.

The Labor Department said its seasonally adjusted Consumer Price Index rose 0.3 percent last month, after falling 0.1 percent in June. Analysts polled by Reuters had forecast consumer prices to rise 0.2 percent.

In the 12 months to July, the consumer price index rose 1.2 percent, in line with market expectations, after rising 1.1 percent in June, the report showed.

The 12-month change for core prices, which excludes food and energy, remained at 0.9 percent for the fourth month in a row, matching the lowest rate since January 1966.

On a monthly basis the core CPI rose 0.1 percent in July, in line with expectations, after increasing 0.2 percent in June.

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