US Inflation Slows In July, But Gas Prices Rise

US consumer prices jumped again in July, as spiking gasoline prices continue to fuel inflation, prompting the White House on Wednesday to call for oil producers to open the taps to boost supply.

However, overall inflation came in at a slower pace than the prior month as some impacts of the pandemic shutdowns appeared to dissipate, according to government data released on Wednesday.

The consumer price index rose 0.5 percent last month, seasonally adjusted, after a 0.9 percent surge in June, the Labour Department said.

Energy prices collapsed when the Covid-19 restrictions forced business and transport largely to shut down, but as widespread vaccinations allowed the economy to begin to return to normal gasoline prices have surged.

Gas prices jumped 2.4 percent compared to June and spiked 41.8 percent compared to July 2020, the report said.

Prices at the pump have become a political liability for President Joe Biden, and the White House on Wednesday called on the OPEC+ producers – the Organisation of the Petroleum Exporting Countries and allies – to do more to boost supply to ease the price spikes.

"Higher gasoline costs, if left unchecked, risk harming the ongoing global recovery," US National Security Advisor Jake Sullivan said in a statement.

But the recent OPEC+ agreement to increase output is "simply not enough" to fully offset cuts imposed during the pandemic, he said.

"President Biden has made clear that he wants Americans to have access to affordable and reliable energy, including at the pump."

Sullivan also called on US regulators to take action against "any illegal conduct" or market manipulation that might be pushing gas prices higher for American drivers.

Sullivan's statement comes three weeks after the OPEC+ group unveiled an agreement to boost output by 400,000 barrels per day each month from August.

The deal means the group's output will be restored to its pre-pandemic level by the end of 2022. (AFP)