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U.S. Inflation Logged at 0.5 Percent in June

July 16, 2013

Consumer prices in the United States rose a seasonally adjusted 0.5 percent in June, the US Bureau of Labour Statistics said Tuesday.

The largest inflation jump in four months was driven largely by a rise in petrol prices, which accounted for about two-thirds of the increase, the Labour Department said.

The increase in inflation could give the Federal Reserve room to act as it looks to ease some of its stimulus programmes.

Federal Reserve Chairman Ben Bernanke said last month that the US central bank could begin to slow its purchases of bonds later this year with an eye towards ending the programme by mid-2014.

Petrol costs rose 6.3 per cent from a month earlier after months of falling prices. Costs for all energy rose 3.4 percent.

Prices for food also rose by 0.2 percent after declining in May with increases in the costs of baked goods, meat, fish and eggs.

The inflation rate for the 12 months through June was 1.8 percent.

So-called core inflation, which excludes volatile food and energy prices, remained unchanged at 0.2 percent in June and 1.6 percent in the past 12 months.

Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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