U.S. consumer prices rose for a fifth straight month in June as the cost of gasoline and a range of other goods increased, further signs of firming inflation that strengthen the case for an interest rate hike this year.
The U.S. Labor Department said on Friday its Consumer Price Index rose 0.3% last month after increasing 0.4% in May. Last month's increase pushed the year-on-year CPI rate into positive territory for the first time since December.
The energy-driven disinflationary trend appears to have run its course. A report on Wednesday showed producer prices rose in June for a second straight month.
Firming price pressures, together with a tightening labor market and strengthening housing could give the Fed confidence that inflation will gradually rise toward its 2% target.
Federal Reserve Chair Janet Yellen this week affirmed the U.S. central bank was keen to start tightening monetary policy later this year after keeping its short-term interest rate near zero for more than six years.
In the 12 months through June, the CPI edged up 0.1% after being unchanged in May. Economists polled by Reuters had forecast the CPI rising 0.3% from May and gaining 0.1% from a year ago.
The so-called core CPI, which strips out food and energy costs, increased 0.2% last month after rising 0.1% in May. Underlying inflation pressures have been tamed by a strong dollar.
In the 12 months through June, the core CPI rose 1.8% after May's 1.7% increase.
