Economy
US Inflation Rises 0.2 Percent in June
Cost of living in the US edged up in June, boosted by an increase in fuel prices and sustained gains in rents.
The inflation rate rose 0.2 percent for a second consecutive month, the Labor Department showed on Friday.
Increase in energy costs and waning dollar strength is helping companies charge their customers a bit more. This upward pressure and improving economy, supported by a healthy labor market would likely allow Fed resume rate hike discussion.
“We’re starting to see upward pressure on the inflation numbers,” said Jim O’Sullivan, a chief U.S. economist at High Frequency Economics Ltd. “It reinforces the case for the Fed to resume tightening, though they’re highly risk averse right now.”
Year-on-year, cost of living rose 1 percent in June.
While core consumer prices excluding energy and volatile goods climbed 0.2 percent, year-on-year, core inflation rose from 2.2 percent to 2.3 percent. Making it the largest year-to-year advance since the current economic expansion began in 2009.
Energy costs rose 1.3 percent in June, while food prices plunged 0.1 percent.