The cost of living in the U.S. rose at a slower pace in June and home sales climbed to an eight-month high, showing the economy is generating little price pressure as growth accelerates.
The consumer price index increased 0.3 percent after a 0.4 percent gain the prior month, figures from the Labor Department showed today in Washington. Purchases (ETSLTOTL) of existing houses advanced 2.6 percent to a 5.04 million annual rate, the National Association of Realtors reported.
The data bolster Federal Reserve Chair Janet Yellen’s view that a recent pickup in inflation was temporary and that the world’s largest economy would rebound from a first-quarter slump. That means the central bank can keep interest rates low well into 2015 even as it continues to trim bond purchases.