US consumer prices recorded their largest increase in nearly 6-1/2 years in the year through June, while the monthly pace continued to suggest a steady buildup of inflation that could keep the Federal Reserve on a path of gradual interest rate increases, Reuters reported. Other data on Thursday showed “US inflation continues to drift gradually higher in response to a nearly fully employed economy, with some nudging from tariffs,” said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. The labor department said its Consumer Price Index edged up 0.1% last month on moderate gains in gasoline prices and sharp declines in the cost of apparel and hotel accommodation. The CPI rose 0.2% in May. In the 12 months through June, the CPI increased 2.9%, the biggest rise since February 2012, after advancing 2.8% in May. With gasoline prices rising modestly and the cost of household utilities dropping in recent months, the increase in the annual inflation rate is expected to slow.
