Meanwhile, U.S. industrial production grew at a slower rate during July, restrained by a big drop in utilities, while capacity use edged upward.

The consumer price index rose 0.1% in July, the U.S. Labor Department said today, compared to June’s 0.2% rise. The core CPI, which excludes volatile food and energy prices, advanced 0.2%, matching June’s increase.

Unrounded, the CPI rose 0.117% last month. The core CPI advanced 0.236% unrounded. The data matched Wall Street forecasts.

Overall consumer inflation was up 2.4% from a year ago. The core CPI was up 2.2% compared to the same month a year ago, the third-straight annual gain of that size. That’s near the 2% top end of the Federal Reserve’s acomfort zone for annual core inflation. The Fed’s preferred gauge, the core price index for personal consumption expenditures, is within that zone at 1.9%annual growth through June.

Energy prices last month decreased 1% compared to June, according to today’s report, the second-straight decline. Gasoline prices fell 1.7%, as did natural gas prices. Electricity prices were unchanged. Food prices increased 0.3%.

Medical-care prices, meanwhile, surged 0.6%, the fastest monthly rise since January. Clothing prices advanced 0.4%, partially reversing four-straight declines.

Housing, which accounts for 40% of the CPI index, rose a tame 0.2%. Rent climbed by 0.3%. Owners’ equivalent rent was up 0.2%. Lodging away from home increased 0.8%

Meanwhile, U.S. industrial production increased 0.3% last month, following a revised 0.6% advance in June, the Federal Reserve said today in a monthly report. Originally, the Fed estimated a 0.5% increase in July output.

Capacity utilization of U.S. industries climbed by 0.1 percentage point to 81.9% from June’s 81.8%. June usage was originally seen at 81.7%. The 1972-2006 average was 81.0%.

Economists had forecast industrial production up 0.2% in July and capacity use at 81.7%.