June’s consumer price index (CPI) release suggests that inflationary pressures were sustained. Headline CPI rose 0.3 percent month-over-month, down 0.1 percent from May’s 0.4 percent rise, yet the year-over-year inflation rate remained at 2.1 percent. The core measure, which excludes food and energy, also eased slightly with a 0.1 percent increase month over month, from 0.3 percent in May, bringing the year-over-year rate to 1.9 percent. The CPI for energy rose 1.6 percent in June, led by a 3.3 percent (month-over-month) jump in gasoline prices, which typically rise in the summer driving season. Food prices, which had been on the rise, edged only 0.1 percent higher (month over month). Elsewhere, drugs, tobacco, and apparel had sharp gains.
