U.S. consumer prices rose less than expected in June amid falling utility prices and a record decline in hotel costs, even as the broader trend showed a pickup in annual inflation that may keep the Federal Reserve on track for gradual interest-rate hikes.
The consumer price index rose 0.1 percent from the prior month after a 0.2 percent gain in May, while the gauge excluding food and energy costs rose 0.2 percent, a Labor Department report showed Thursday. The Bloomberg survey median called for a 0.2 percent gain in both the main and core indexes.
The overall gauge rose 2.9 percent in the 12 months through June, the most since 2012, while the core gauge climbed 2.3 percent, the biggest gain since January 2017. Both matched economists' estimates.
The pickup in core inflation reflects continued upward pressure on services and some goods, with job gains and consumer spending steady and second-quarter economic growth projected to accelerate to above 3 percent. Companies may be looking for ways to pass along higher production costs to customers as fuel and transportation prices rise and tariffs provide a boost.
Source : Bloomberg