US consumer prices up 0.5 pct. in June on jump in gas prices; outside increase, inflation tame

WASHINGTON – A measure of U.S. consumer prices rose in June, pushed higher by a sharp increase in gas prices. But the overall trend in inflation stayed tame.

The Labor Department says the consumer price index increased 0.5 per cent in June from May. Two-thirds of the increase came from a 6.3 per cent jump in gas prices, the largest since February. Excluding volatile food and energy costs, so-called core prices rose just 0.2 per cent.

Consumer prices have risen just 1.8 per cent over the past 12 months. And core prices are up just 1.6 per cent in that period — the smallest 12-month change in two years

Low inflation has given the Federal Reserve room to keep interest rates low in an effort to boost the economy.

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