Consumer prices shot up in June by the largest amount in 11 months, reflecting the biggest jump in gasoline prices in nearly five years. The Commerce Department says inflation at the consumer level rose by 0.7% last month, slightly higher than the 0.6% increase that economists were expecting. It was the biggest one-month gain since a 0.7% increase last July. The big jump was seen as a temporary blip, however. Inflation is not expected to be a problem any time soon given a severe recession, which is keeping a lid on wage pressures. Underscoring the low threat of accelerating inflation, prices in June compared to a year ago were actually down by 1.4%, the biggest year-over-year decline in nearly six decades. Core inflation, which excludes food and energy, posted a moderate 0.2% rise in June, slightly higher than the 0.1% rise that economists had expected.
National consumer prices jump 0.7% in June
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