Consumer prices rise less than expected

Reuters/Lucas Jackson

Consumer prices rose less than expected in June, according to the latest consumer price index.

Higher energy prices offset cheaper food costs, lifting the headline index.

CPI rose 0.2% month-on-month and 1% year-on-year. Economists had forecast that the basket of prices measured by CPI rose 0.3% month-on-month and 1.1% year-on-year, according to Bloomberg.

Compared to the prior year, core CPI rose 2.3%, and 0.2% month-on-month.

Economists had estimated that excluding ever-fluctuating food and energy costs, core CPI increased 0.2% month-on-month and 2.2% year-on-year.

That rate compared to a year ago is above the Federal Reserve’s target of 2%, although it prefers to use personal consumption expenditures as a gauge of inflation.