WASHINGTON (AP) – U.S. consumer prices rose modestly in June as the costs of gasoline and rent kept climbing, while sales at American retailers registered a healthy gain.
The Labor Department said Friday that consumer prices increased 0.2 percent last month, matching the gain in May. Prices are up 1 percent from a year ago, well below the Federal Reserve’s 2 percent inflation target.
Excluding the volatile food and energy categories, prices were up 0.2 from May and 2.3 percent from June 2015.
The Fed, which meets July 26-27, wants to see evidence that inflation is ticking up before raising short-term U.S. interest rates again. In December, it raised rates for the first time since 2006. But it has hesitated to follow up with more increases. The American job market looked weak in May before rebounding in June. And Britain’s June 23 decision to leave the European Union has rattled financial markets and raised uncertainty about the global economy.
Food prices fell for a second straight month in June. Energy prices rose 1.3 percent, including a 3.3 percent increase in gasoline prices. Rents rose 0.4 percent.