Us Consumer Prices Up 0.3 Percent In June

WASHINGTON (AP) — U.S. consumer prices rose in June at a slightly slower pace than in May with two-thirds of the June advance driven by the largest jump in gasoline prices in a year. Economists believe energy price gains will slow in coming months although tensions in the Middle East and Ukraine could derail those hopes if they trigger a surge in global oil prices. The forecast of many analysts is that the Fed will keep a key short-term interest rate at a record low near zero over the next year with the first rate increase not occurring until the summer of 2015. In delivering the central bank's twice-a-year report to Congress last week, Fed Chair Janet Yellen sent a strong signal that the central bank still believed the economy needed help despite recent solid job gains which have pushed the unemployment rate down to 6.1 percent, the lowest level in nearly six years. Yellen acknowledged the improvement in the labor market but also noted that unemployment remains above the 5.2 percent to 5.5 percent range that Fed officials view as optimal.

Topics:  washington ap     u.s   june   economists   middle east   ukraine   congress   fed chair janet yellen   in   fed   yellen   percent   consumer prices   rate   central   year   bank   unemployment   
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