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U.S. core inflation in June saw largest rise in 18 months

By Nicholas Sakelaris
U.S. core inflation in June saw largest rise in 18 months
Price changes in the auto market were significant in the rise of core inflation in June, the Labor Department said Thursday. File Photo by Stephen Shaver/UPI | License Photo

July 11 (UPI) -- Core inflation in the United States -- the difference in the costs of most domestic goods and services -- climbed during the month of June by the largest amount in one and a half years, government figures showed Thursday.

The Labor Department's consumer price index showed costs rose 0.3 percent last month, the largest rise since January 2018.

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The core index reflects the changes across all U.S. goods except food and energy. Thursday's index followed 0.1-percent gains each month from February to May.

The climb in June was fueled most by increases in the clothing, auto and home furnishings sectors, the report said.

The overall consumer price index rose 0.1 percent in June. Lower costs of gasoline and food were contributing factors, the report said.

The energy index fell 2.3 percent, preventing overall inflation from going up.

The statistics showed the overall cost of living over the last 12 months dipped to 1.6 percent, down from 1.8 percent in May. The core cost of living rose 2.1 percent in June and the food index was unchanged.

Analysts feel the Labor Department report probably isn't enough to dissuade the Federal Reserve from cutting interest rates at its July 30 policy meeting.

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