US consumer prices rise 03% in August, lowest in 7 months

WASHINGTON (AP) — U.S. consumer prices rose a lower-than-expected 0.3% last month, the smallest increase in seven months and a hopeful sign that inflation pressures may be cooling.

The August gain fell from a 0.5% increase in July and a 0.9% surge in June, the Labor Department reported Tuesday. It was the smallest increase since a similar 0.3% rise in January.

The August slowdown in prices was seen as offering some hope that Americans were finally starting to...