Victor J. Blue/Bloomberg News
The consumer price index increased 0.3% in June after a 0.4% gain the prior month, matching median forecast of 85 economists surveyed by Bloomberg News, figures from the Labor Department showed.
The core measure, which excludes volatile food and fuel costs, increased 0.1%, less than projected.
Inflation has failed to get a toehold as slowing global demand has prevented companies from exercising pricing power. If prices remain in check, Fed policy makers can keep interest rates low well into 2015.
“Inflation, at least for the moment, isn’t a problem,” said Nariman Behravesh, chief economist at IHS Inc. “We had a little bit of a scare, a minute of worry for a while there, but it’s basically going away.”