US inflation increased 8.5% for the 12-month period ending in July, driven by lower energy prices, a smaller figure than the 9.1% increase for the 12-month period ending in June.

The CPI data released on Wednesday remained unchanged between June and July, the US Bureau of Labor Statistics reported.

According to the Financial Times, the data are unlikely to represent a large enough shift to stop the Federal Reserve from continuing with its aggressive tightening of monetary policy to curb inflation.

The gasoline index fell 7.7 percent in July and offset increases in the food and shelter indexes, resulting in the all items index being unchanged over the month.

The energy index fell 4.6% over the month as the indexes for gasoline and natural gas declined, but the index for electricity

increased. The food index continued to rise, increasing 1.1 percent over the month as the food at home index rose 1.3 percent.

Economists in a Bloomberg survey projected a 0.2% rise in the overall CPI from a month ago and an 8.7% year-over-year increase.

(Writing by Seban Scaria seban.scaria@lseg.com; editing by Daniel Luiz)