People buy at a Walmart store in Rosemead, California on May 23, 2019.
Frederic J. Brown | AFP | Getty Images
US underlying consumer prices rose the most in almost a year and a half in June, due to the sharp rise in the costs of a range of goods and services, but are unlikely to change expectations, the Federal Reserve said. reducing his interest rates this month.
The Ministry of Labor said Thursday that its consumer price index excluding volatile components of food and energy products rose 0.3% last month. This represents the largest increase since January 2018 and follows four consecutive monthly gains of 0.1%. The so-called core CPI was boosted by the sharp rise in prices for used clothing, cars and trucks, as well as home furnishings.
The cost of health care and rents has also increased. In the last 12 months of June, the core CPI rose 2.1% after rising 2.0% in May.
The overall CPI edged up 0.1% last month, dampened by lower prices for gasoline and food. The CPI rose 0.1% in May. It rose 1.6% in June in June after rising 1.8% in May.
Economists polled by Reuters had predicted that the CPI would remain unchanged in June and rise 1.6% from one year to the next.
The Fed, which aims to inflation by 2%, follows the basic price index of personal consumption expenditure (PCE) of monetary policy. The base price index of PCE rose 1.5% in May over the previous year and was below its target this year.
Fed Chairman Jerome Powell told lawmakers on Wednesday that the US central bank would act "as it should" to protect the economy from growing risks such as trade tensions and slowing global growth. Powell also said "there was a risk that low inflation would be even more persistent than we currently expect."
The decision makers of the US central bank are scheduled to meet on July 30-31. Last month, the Fed revised down its 2019 inflation forecast from 1.5% to 1.8% in March.
In June, gasoline prices fell 3.6% after declining 0.5% in May. Food prices remained unchanged last month after a rebound of 0.3% in May. Food consumed at home decreased by 0.2%.
The rent equivalent to the rent equivalent to that of homeowners, which is what an owner would pay to rent or receive a rental home, increased by 0.3% in June, which corresponds to the May gain. Health care costs increased 0.3% after a similar increase in May.
Clothing prices jumped 1.1% after remaining unchanged in May. Prices for these products fell in March and April after the government introduced a new method and new data to calculate their cost. Prices for motor vehicles and used trucks jumped 1.6% in June after four months of decline.
The price of supplies and household operations rose 0.8%, the largest increase since 1991, driven by higher costs for gardening and lawn care services.