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US Inflation Reaches 2.9 Percent in June, Highest in 6 Years

US Inflation Reaches 2.9 Percent in June, Highest in 6 Years

CHRISTOPHER RUGABER, AP Economics Writer
Created: July 12, 2018 11:49 AM

WASHINGTON (AP) - Consumer prices rose in June from a year earlier at the fastest pace in more than six years, lifted by more expensive gas, car insurance, and higher rent.

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The Labor Department said Thursday that the consumer price index ticked up just 0.1 percent in June. But inflation jumped 2.9 percent from a year earlier, the largest annual gain since February 2012. Core prices, which exclude the volatile food and energy categories, rose 0.2 percent in June and 2.3 percent from a year earlier.

Solid economic growth and supply bottlenecks have pushed inflation past the Federal Reserve's 2 percent target, after price gains had languished below that level for six years. That is a key reason that Fed officials expect to raise short-term rates twice more this year.

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CHRISTOPHER RUGABER, AP Economics Writer

Copyright 2018 The Associated Press. All rights reserved.

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