U.S. consumer prices remained unchanged in June, indicating inflation may remain stuck below the goal of the U.S. central bank for a long time.
Consumer Price Index (CPI), a main gauge of inflation, was unchanged on a seasonally adjusted basis in June, compared to 0.1 percent decrease in the previous month, said the Labor Department on Friday.
On a year-on-year basis, the index increased 1.6 percent, down from the 1.9 percent increase in May. Food index was also unchanged in June, compared to a 0.2 percent growth in May. The energy index fell 1.6 percent in the month following a 2.7 percent decline in May.
Excluding the volatile food and energy categories, the so-called core CPI went up 0.1 percent in June on a seasonally adjusted basis, and was up 1.7 percent over the year, the same growth as in May.
In view of the softness in inflation data, U.S. Federal Reserve officials might be cautious in determining further interest rate hikes.
"(We) have felt that it probably remains prudent to continue on a gradual path of rate increases," said Fed chair Janet Yellen on Thursday in a Congress hearing in regard to the low inflation.
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