Inflationary pressures moderated last month. Consumer prices inched up 0.1% (2.9% y/y) during June following two months of 0.2% increase. Expectations had been for a 0.2% rise in the Action Economics Forecast Survey. The CPI excluding food & energy rose 0.2% (2.3% y/y) for the fourth month in the last five. The gain matched expectations.

Services prices continued to outpace goods prices. The 0.2% increase followed a 0.3% gain and pulled the y/y rise up to 3.1%, its quickest since early last year. Medical care services strengthened 0.5% (2.5% y/y) as hospital fees surged 0.8% (4.7% y/y). The cost of recreation services improved a steady 0.4% (2.3% y/y). The owners' equivalent rent of primary residences rose 0.3% (3.4% y/y) and rents of primary residences also increased 0.3% (3.6% y/y). Education & communication services prices rose 0.3% (1.1% y/y). Transportation services prices increased 0.2% (3.7% y/y), but public transportation costs fell 0.8% (-2.7% y/y). Miscellaneous personal services declined 0.1% (+3.7% y/y) as financial services costs fell 0.4% (+6.1% y/y).

Goods prices less food & energy were little changed, but the 0.2% y/y decline compares to -1.0% as of the end of October. Education & communication product prices were off 0.9% (-2.4% y/y) and reversed May's 0.7% gain. Apparel prices fell 0.9% (+0.6% y/y) after holding steady the month prior. Appliance prices held steady m/m, but the 1.1% y/y rise compares to price deflation in the prior five years. The cost of home furnishings eased 0.2% (-1.2% y/y) after a 0.6% drop. New vehicle prices rose 0.4% (-0.5% y/y) but used car & truck prices jumped 0.7% (-0.7% y/y). The 0.2% decline (-3.2% y/y) in recreation product prices was led by a 0.6% fall (-13.6% y/y) in the cost of video & audio products. To the upside, medical care goods prices rose 0.2% (+2.4% y/y) after a 1.3% surge.

Food prices increased 0.2% (1.4% y/y) as dairy & related product prices strengthened 0.7% (0.4% y/y). Fruit & vegetable prices improved 0.5% (0.2% y/y) following a 0.3% decline. The cost of cereal & bakery products gained 0.6% (0.5% y/y) after no change in May. Meat prices eased 0.4% (+0.1% y/y) but seafood prices surged 0.5% (1.4% y/y). Egg prices fell 7.1% (+14.1% y/y).

Energy prices were off 0.3% following two months of strong increase. A 1.4% decline (-0.1% y/y) in the cost of electricity and a 1.7% drop (-2.1% y/y) in natural gas prices held back the increase in the overall figure. Gasoline prices increased 0.5% (24.3% y/y) after two months of strong gains. Fuel oil prices surged 2.9% (30.8% y/y).

The consumer price data can be found in Haver's USECON database with additional detail in CPIDATA. The Action Economics survey figure is in the AS1REPNA database.