US consumer prices hold steady

US consumer prices held steady in June as declines in energy prices were offset by rising costs of food and other items, the government reported Tuesday.

The Labor Department said its consumer price index was unchanged from May, while the year-over-year change was 1.7 percent, the same as in May.

Core CPI, excluding the more volatile food and energy prices, rose for the fourth straight month, by 0.2 percent. On an annual basis, it was 2.2 percent.

The numbers were in line with expectations. Analysts forecast a 0.1 percent rise in headline CPI after consumer prices fell for the first time in two years in May, and no change in core CPI.

Food prices climbed 0.2 percent in June, while energy prices dropped 1.4 percent.

The June index for medical care services rose 0.6 percent, its largest increase since September 2010, the department said.

Prices of new automobiles rose 0.2 percent, unchanged from May, while those for used cars and trucks were flat after three months of increases.

"Lower input and headline prices continue to point to slower underlying inflation in the months ahead," said Arijit Dutta at Moody's Analytics.

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