Americans paid more for rent, clothes and autos in June, but consumer inflation was largely held in check by falling energy prices. Waning inflation is one of the chief reasons the Federal Reserve is likely to cut interest rates by the end of the month.
The consumer price index rose 0.1% in June, the government said Thursday. Economists polled by MarketWatch had forecast no change.
The increase in the cost of living over the past 12 months slipped to four-month low 1.6% from 1.8%.
Another closely watched measure of inflation, however, was not as tame. The so-called core rate that strips out food and energy jumped 0.3% last month, marking the biggest increase in a year and a half. Higher rents were a big contributor.
The 12-month increase in the core rate edged up to 2.1% from 2%.