Consumer prices jump 0.5% in June on higher gasoline costs

WASHINGTON -- Sharply higher prices at the gas pump led to the biggest jump in inflation since the winter, the Labor Department said Tuesday.

The Consumer Price Index rose 0.5% in June after just a 0.1% increase in May. Gasoline prices were the major factor, shooting up 6.3% in June following sharp declines in the spring.

The increase was the largest since prices rose 0.7% in February.

Analysts surveyed by Bloomberg expected a 0.3% increase in the index, a key measure of inflation.

The so-called core index, which excludes volatile energy and food costs, was up 0.2%, the same as in May.

QUIZ: How much do you know about the federal budget cuts?

Over the previous year, consumer prices for all goods and services rose 1.8%. Although it was a significant increase over the 1.4% annual rate reported in May, inflation remained below the Federal Reserve's target of 2%.

The core inflation rate for the previous year was 1.6% in June, the smallest 12-month rate since mid-2011, the Labor Department said. The 12-month rate in May was 1.6%.

The June rise in gasoline prices, which has continued this month amid concern about political unrest in Egypt, was the biggest since a 9.1% increase in February.

Food prices were up 0.2% in June, the largest monthly increase since December. Those prices had dropped 0.1% in May.

Prices for medical care, new vehicles and clothing also were up significantly in June compared to May.


Boeing supplier joins probe into 787 fire

Major financial crisis trial kicks off in New York

Petersen Automotive Museum takes a major detour

Copyright © 2015, Los Angeles Times