U.S. consumer prices rise 0.3 pct in June

U.S. consumer prices rose for the fifth straight month in June, signaling the inflation pressure is gradually building up.

Consumer price index (CPI), a main gauge of inflation, went up 0.3 percent in June on a seasonally adjusted basis, following a 0.4 percent increase in May, said the Labor Department on Friday.

On a year-on-year basis, the index rose 0.1 percent, the first increase seen this year.

Advances in the indexes for gasoline, shelter and food all contributed to the increase of CPI in June, said the department.

The energy index rose for the second consecutive month, as the indexes for gasoline, electricity, and natural gas all increased. Food index posted its largest increase since September 2014, partly due to a sharp increase in the eggs index.

Excluding the volatile food and energy categories, the so-called core CPI rose 0.2 percent in June on a seasonally adjusted basis, higher than May's increase of 0.1 percent.

The core CPI was up 1.8 percent from a year earlier, compared to a 1.7 percent growth in May. The improved headline CPI data was one of the signs that the modest inflation pressure is beginning to build.

U.S. Federal Reserve chair Janet Yellen said in her two-day congressional testimony this week that low energy prices and a strong U.S. dollar -- which were holding down inflation -- were temporary.

"My colleagues and I continue to expect that, as the effects of these transitory factors dissipate and as the labor market improves further, inflation will move gradually back toward our 2 percent objective over the medium term," said Yellen. Endi