Consumer Prices Index Up 0.2%

Washington, DC, July 18, 2007—The consumer prices index rose 0.2% in June, the smallest gain in five months, according to the Labor Department.

The increase followed a 0.7% rise in May.

Core prices, which exclude food and energy, rose 0.2% and were up 2.2% from a year earlier.

Economists were expecting the CPI to rise 0.1% and the core rate to rise 0.2%.

Year-over-year, overall prices were up 2.7%. The year-over-year increase in core prices matched May's as the smallest 12-month gain since March 2006.

So far this year, prices are rising at a 5% annual rate, compared with a 4.7% rise in the same period last year. Core prices are gaining at a 2.3% pace, compared with 3% in the first half of last year.

Energy prices fell 0.5% after rising 5.4% in May. Gasoline prices dropped 1.1 percent.

Housing costs rose 0.3% after rising 0.2%. Owner's equivalent rent, which makes up 30% of the core CPI, increased 0.2 % after rising 0.1%. May's was the smallest gain in rents since June 2005.

Medical-care costs rose 0.2% after rising 0.3%. Clothing prices dropped 0.6% after falling 0.3% the prior two months.

Almost 60% of the CPI covers prices that consumers pay for services ranging from airline fares to movie tickets and laundry charges.

Auto prices were unchanged after falling 0.2%.