US consumer prices rise 0.3 percent in August, lowest in 7 months

US consumer prices rose a lower-than-expected 0.3 percent in August, the smallest increase in seven months and a hopeful sign that inflation pressures may be cooling. The August gain fell from a 0.5 percent increase in July and a 0.9 percent surge in June, the Labor Department reported Tuesday. It was the smallest increase since a similar 0.3 percent rise in January.

The August slowdown in prices was seen as offering some hope that Americans were finally starting to see some relief from a price surge earlier in the year.