Key US inflation measure hits highest rate in 6 years in July, up 2.3%

A key measure of annual US inflation rose last month at the fastest pace seen in six years, accelerating slightly from June, the Commerce Department reported Thursday.

The Federal Reserve's preferred price index, based on consumer spending, rose 2.3 per cent in the 12 months ended in July, according to the monthly data, which was the strongest since March 2012.

Excluding volatile food and energy prices, the inflation rate also accelerated to 2.0 per cent, which hits the Fed's goal.