WASHINGTON (AP) – U.S. consumer prices rose modestly in June as falling food prices offset a rise in gasoline costs. The Labor Department says consumer prices increased 0.2 percent last month, matching the gain in May. Prices are up 1 percent from a year ago, well below the Federal Reserve’s 2 percent inflation target. Excluding the volatile food and energy categories, prices were up 0.2 from May and 2.3 percent from June 2015. Food prices fell for a second straight month in June. Energy prices rose 1.3 percent, including a 3.3 percent increase in gasoline prices. The Fed wants to see evidence that inflation is ticking up before raising short-term U.S. interest rates again. In December, it raised rates for the first time since 2006.
