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Increases in the costs of groceries, apparel, vehicle insurance, furniture and recreation pushed the CPI higher, offset by drops in used vehicle prices and airfares.

"For Fed officials, a slow grind down in inflation only supports the higher-for-longer view on interest rates," Rubeela Farooqi, chief U.S. economist at High Frequency Economics, said in a note. "Policymakers have more work to do in lowering inflation back towards target and are likely to continue lifting rates and will keep policy restrictive for some time."

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