U.S. consumer prices decrease 0.1 pct in August

U.S. consumer prices dropped in August due to falling energy prices, complicating U.S. Federal Reserve's decision on whether to raise interest rate at this week's meeting.

Consumer Price Index (CPI), a main gauge of inflation, went down 0.1 percent in August on a seasonally adjusted basis, the first decrease since January, following a 0.1 percent increase in July, said the Labor Department Wednesday. On a year-on-year basis, the index rose 0.2 percent.

The gasoline index declined sharply in August and was the main cause of the drop in the CPI, said the department.

Excluding the volatile food and energy categories, the so-called core CPI rose 0.1 percent in August on a seasonally adjusted basis, the same increase as in July. The core CPI was up 1.8 percent from a year earlier, also the same as in the previous month.

Fed officials, set to meet Wednesday and Thursday, are going to discuss when to raise interest rate after the unemployment rate dropped to a level considered as full employment. But the inflation rate has remained below the Fed's 2 percent target, which might lead the Fed to hold off on raising rates. Endit