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U.S. core CPI rises 0.2% in June

Published 07/17/2012, 08:35 AM
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Investing.com - Core consumer price inflation in the U.S. rose broadly in line with market expectations in June, while prices including food and energy costs remained unchanged, official data showed on Tuesday.

In a report, the Bureau of Labor Statistics said that core consumer prices rose by a seasonally adjusted 0.2% in June, in line with expectations, after rising by 0.2% in May.

Year-over-year, core consumer prices rose at an annualized rate of 2.2% in June in line with expectations and down from 2.3% in May.

Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories.

The central bank usually tries to aim for 2% core inflation or less.

Consumer prices, including food and energy costs, were flat last month, compared to expectations for a 0.1% decline. Consumer prices fell 0.3% in May.

Consumer prices increased at annualized rate of 1.7% last month, unchanged from May. Analysts expected consumer prices to rise at an annualized rate of 1.6%.

Following the release of the data, the U.S. dollar remained modestly lower against the euro, with EUR/USD easing up 0.05% to trade at 1.2278.

Meanwhile, U.S. stock index futures held on to gains. The Dow Jones Industrial Average futures pointed to a rise of 0.35%, S&P 500 futures indicated an increase of 0.35%, while the Nasdaq 100 futures signaled a 0.4% gain at the open.

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