LOUISVILLE, Ky. — St. Louis Federal Reserve Bank President James Bullard said July's inflation figures show prices are headed towards the Fed's target "naturally," and reiterated the position that any tapering decision would be data dependent.

The higher inflation numbers in the July report would be "bolstering the notion that inflation would be naturally moving back towards target in coming months," Bullard told reporters Thursday after a speech in Louisville, Ky. July CPI was as expected at a 0.2% rise overall, with core inflation up 0.2%. These resulted in a 2.0% gain overall and a 1.7% rise in core year-over-year.

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