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Rising Gas Prices Fuel a Jump in U.S. Consumer Costs

July 16, 2013
URL: http://www.entrepreneur.com/article/227444

Gasoline prices in June rose by their highest rate in four months, fueling an overall rise in U.S. consumer prices.

The Labor Department said Tuesday the Consumer Price Index rose 0.5 percent, which was the largest increase since February. The CPI had risen just 0.1 percent in May.

Blame prices at the pump. Gasoline prices accounted for about two-thirds of the increase in the CPI and also jumped at the highest rate since February.

The overall rise in CPI was well ahead of what economists predicted.

Still, the jump isn't stoking fears of inflation yet. In the 12-month period through the end of last month, consumer prices are up 1.8 percent. A month earlier, the overall rise was 1.4 percent. Both are still under the Federal Reserve's target of 2 percent.

In addition to gasoline, prices rose in health care, new car sales, clothing and furniture.

Related: Modest Rise in Retail Sales Could Signal Slowdown in U.S. Economy