US .. Underlying consumer prices increased the most in almost 1-1 / 2 years in June, including strong gains in the cost of a number of goods and services, but are unlikely to change expectations. The Federal Reserve will cut interest rates this month.
The Ministry of Labor said on Thursday that the consumer price index excluding volatile food and energy components rose 0.3% last month. That is the biggest increase since January 2018 and followed four fast monthly gains of 0.1%. The so-called core CPI was increased by strong increases in the prices of clothing, used cars and trucks, as well as household furnishings.
There were also increased costs for healthcare and rent. In the 1
CPI increased by 0.1% last month, held back by cheaper gasoline and food prices. The CPI rose 0.1 per cent in May. It rose 1.6 per cent this year in June, having increased 1.8 per cent in May.
Economists who were asked by Reuters had the forecast CPI unchanged in June and increased by 1.6% year on year.
The Fed, which has a 2% inflation target, tracks the core personal spending expenditure (PCE) record for monetary policy. The core PCE price index rose 1.5 percent year-on-year in May, and has underlined its goal this year.
Fed chairman Jerome Powell on Wednesday told lawmakers that the US central bank would "act as appropriate" to protect the economy from rising risks such as trade tensions and slowing global growth. Powell also said "there is a risk that weak inflation will be even more persistent than we currently expect."
Politicians from the US central bank are scheduled to meet on July 30-31. Fed last month downgraded inflation projections in 2019 to 1.5% from 1.8% projected in March.
In June, petrol prices went down 3.6% after falling 0.5% in May. Food prices were unchanged last month after having increased 0.3% in May. Fruit consumed at home fell 0.2%.
Ownership rentals of primary residences, which a house will pay to rent or receive from renting housing, increased by 0.3% in June, which matched Mays gain. Health costs increased by 0.3%, following a similar advance in May.
Clothing prices increased by 1.1% after being unchanged in May. The prices of these goods rolled in March and April after the government introduced a new method and data to calculate costs. Prices for household furnishing and operations increased by 0.8%, the biggest gain since 1991, driven by rising gardening and grass care costs.
Prices for household furnishings and operations increased by 1.6% in June, after falling into four straight months.