U.S. inflation rises for second straight month

The Consumer Price Index rose by 0.3% last month and brought the 12-month inflation rate up to 2.7%, according to a report Tuesday from the Bureau of Labor Statistics. The index measures the average change in prices of a set of goods and services, including food, housing, transportation, medical care, and education. June’s year-over-year increase is up from the 2.4% inflation rate reported in May but still below the 3% recorded in January.

What were some key findings from the report? Energy costs increased by 0.9%, representing the largest change of any subset of costs. Meanwhile, the index for food rose by 0.3%, and shelter increased by 0.2%. The price of eggs dropped significantly in June compared to May, while the cost of fruits and vegetables rose.

What have federal officials said about the report? While costs to consumers remain high for some goods, the White House on Tuesday said the new data showed the economy was stabilizing. The annualized rate of inflation is lower than the previous year, and wages for production and nonsupervisory workers rose, according to the statement. The Federal Reserve’s target 12-month inflation rate is 2% or less.

Dig deeper: Read Christina Grube’s report about President Donald Trump threatening to impose more tariffs.