US consumer prices up by 0.3 percent in June
By Martin Crutsinger ,AP
July 23, 2014, 12:15 am TWN
WASHINGTON -- U.S. consumer prices rose in June at a slightly slower pace than in May with two-thirds of the June advance driven by the largest jump in gasoline prices in a year.
Prices rose 0.3 percent in June following a 0.4 percent rise in May, the Labor Department reported Tuesday. The May increase had been the biggest one-month gain in more than a year.
Energy prices were up 1.6 percent, nearly double the May gain, reflecting a sharp 3.3 percent rise in gasoline costs. But food costs edged up just 0.1 percent, the smallest gain since January.
Core prices, which exclude volatile food and energy, were up just 0.1 percent. Over the past 12 months, core prices are up 1.9 percent, an indication of moderate inflation.
Overall prices have risen 2.1 percent in the past 12 months. While the 12-month price gains are up from extremely low readings earlier this year, the figures are close to the 2 percent annual price gains that the Federal Reserve seeks to achieve.
The 3.3 percent jump in gasoline costs was not expected to be repeated in July given that pump prices have been falling in recent weeks. The AAA says the nationwide average for a gallon of gas stood at US$3.57 on Monday, down from US$3.68 a month ago and an indication that energy prices may be easing slightly.
Food costs have been rising sharply this year, reflecting a variety of factors from cold weather hurting winter crops in such states as Florida and a severe drought in California.