June US CPI Report Shows Inflation at a 2.7% Annual Rate, Largely as Expected

The Bureau of Labor Statistics reported that the Consumer Price Index increased 2.7% in June from year-ago levels, compared with 2.4% in May. Year-over-year core CPI (which excludes volatile food and energy costs) rose 2.9%, surpassing the May rate of 2.8%.

The CPI rose 0.3% month over month in June after rising 0.1% in May. Core CPI also rose 0.2%, matching the May increase.

Economists had forecast the CPI to rise 0.23% on a monthly basis in June, taking the annual inflation rate to 2.6%, according to FactSet’s consensus estimates. Economists predicted that core inflation rose 0.3% on a monthly basis and 3.0% on an annual basis.

June CPI Report Key Stats

• CPI rose 0.3% for the month after rising 0.1% in May.
• Core CPI also rose 0.2% after rising 0.1% in May.
• CPI increased 2.7% year over year after increased 2.4% the prior month.
• Core CPI rose 2.9% from year-ago levels after rose 2.8% in May.

Food prices increased 0.3% in June after increased 0.3% in May. Grocery prices rose 0.3%, while restaurant prices increased 0.4%.

Energy prices were mixed after holding steady last month. Utility gas prices rose 0.5%, fuel oil prices increased 1.3%, gasoline prices rose 1.0%, and electricity prices increased 1.0%. Shelter prices rose 0.2% after rising 0.3% in May.