U.S. June core CPI up 0.3% on rising rents

WASHINGTON (MarketWatch) - U.S. consumer prices increased a moderate 0.2% in June, the smallest gain in four months, but core inflation rose 0.3% for the fourth straight month, putting pressure on the Federal Reserve to raise interest rates again. The Labor Department said the consumer price index increased 0.2% in June after rising 0.4% in May. Energy prices fell 0.9%, while food prices rose 0.3%. The CPI is up 4.3% in the past 12 months. The core CPI is up 2.6% in the past year, a bit more than the Fed would like. Economists were expecting 0.2% gains in both the headline CPI and the core CPI, which excludes food and energy costs.