U.S. consumer prices rose more than expected in June as gasoline prices jumped
and underlying inflation pressures stablized. The Labor Department announced
its Consumer Price Index increased 0.5 percent, the largest increase since February.
Gasoline prices accounted for about two thirds of the increase in the CPI.
Economists polled by Reuters had expected consumer inflation to increase by 0.3
percent last month.
In the 12 months through June, consumer prices advanced 1.8 percent after rising
1.4 percent in May. It was also the largest increase in February.
Stripping out volatile energy and food, consumer prices increased 0.2 percent
for a second straight month. That took the increase over the 12 months to June to
1.6 percent, the smallest increase since June 2011. The core CPI had increased
1.7 percent in May.
There were also increases in the prices for new motor vehicles, apparel and
household furnishings. Last month, gasoline prices soared 6.3 percent after
being flat in May. June's increase in the cost of gasoline was the largest since
February. When unadjusted for seasonal fluctuations, gasoline prices rose
only 0.6 percent. Food prices rose 0.2 percent after slipping 01. percent the
prior month. Overall housing costs maintained their steady rise, with owners'
equivalent rent which accounts for about a third of the core CPI - increasing
0.2 percent after a similar gain in May.
Sheila McKinney
