WASHINGTON (dpa-AFX) - The Labor Department released a report on Tuesday showing consumer prices in the U.S. increased in line with economist estimates in the month of June.
The report said the consumer price index rose by 0.3 percent in June after inching up by 0.1 percent in May.
The modest increase by consumer prices was partly due to a rebound by energy prices, which jumped by 0.9 percent in June after tumbling by 1.0 percent in May. Prices for gasoline shot up by 1.0 percent.
The annual rate of consumer price growth accelerated to 2.7 percent in June from 2.4 percent in July. Economists had expected the price of growth to rise to 2.6 percent.
The Labor Department also said the core consumer price index, which excludes food and energy prices, edged up by 0.2 percent in June after creeping up by 0.1 percent in May. Core prices were expected to increase by 0.3 percent.
'Defying expectations, the core CPI increase of just 0.2 percent in June reveals an ongoing benign response to the tariffs so far,' said Nationwide Chief Economist Kathy Bostjancic.
She added, 'That said, the Fed's job in deciding when to resume rate cuts remains difficult, especially given the fresh threats of additional tariffs which heighten the uncertainty of the eventually effective tariff rate and the impact on inflation and growth in the coming months.'
The uptick by core consumer prices partly reflected a 0.2 percent increase by shelter costs as well as higher prices for household furnishings and operations, medical care, recreation, apparel and personal care.
Meanwhile, the report said prices for used cars and trucks, new vehicles, and airline fares were among those that decreased in June.
The report said the annual rate of core consumer price growth ticked up to 2.9 percent in June from 2.8 percent in May, in line with economist estimates.
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