News Summary: Consumer prices up 0.5 percent
(AP) - CONSUMER INFLATION: Consumer prices rose 0.5 percent in June compared with May, the biggest jump since February. However, two-thirds of the increase represented a surge in gas prices.
CORE INFLATION: Excluding volatile energy and food, consumer prices rose a modest 0.2 percent in June and are up just 1.6 percent over the past year, the smallest 12-month change in two years.
OUTLOOK: Consumer inflation has been tame this year. That gives the Federal Reserve room to continue efforts to stimulate the economy with low interest rates.
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