By DPA,
Washington : US inflation retreated in August from a 17-year high as consumer prices rose 5.4 percent year-on-year, drawn down by waning energy costs, the Department of Labor reported Tuesday.
The news marked a retreat from the 5.6 percent inflation rate in July.
The cost of living index dropped 0.1 percent from July to August on a seasonally adjusted basis, after an 0.8 percent increase in July.
The decrease reflected lower energy prices, which declined by 4.2 percent from July but were still 35.6 percent higher than August 2007.
Food prices continued to rise by 0.6 percent in August after growing 0.9 percent in July.
Core prices, which do not include food and energy, continued to increase by 0.2 percent in August after increasing 0.3 percent in July.
Later Tuesday, the US central bank, the Federal Reserve, was to adjust interest rates a day after a chaotic shake-up in the US finance industry that saw major stock indices drop by more than four percent.