WASHINGTON (CNNfn) - Consumer prices posted their biggest advance in
three months in June, fueled by a jump in gasoline prices and a surge in overall
transportation costs, the government reported Tuesday. Declines in prices for
clothing and education-related products partially offset the gains.

The Labor Department's consumer price index, the most comprehensive
measure of price changes for goods and services in the U.S. economy, jumped
0.6 percent in June after gaining 0.1 percent in May. Analysts polled by
Briefing.com had expected a 0.4 percent gain. Excluding food and energy
costs, which tend to be more volatile from month to month, prices gained a
more moderate 0.2 percent, in line with forecasts.

Financial markets registered little reaction to the numbers as investors
concluded that, outside of surging prices for gasoline and oil, prices
remain relatively tame. Stock futures showed little change immediately
following the report's release and bonds registered a muted reaction.

Virtually all the gains came from higher energy prices, Labor said. Energy
costs surged 5.6 percent last month, the biggest increase since a 6 percent
jump in April 1999. A 1.8 percent increase in transportation costs, mostly
related to higher prices for gasoline, also lifted the index for the month.

Between April and June, consumer prices gained 2.6 percent and rose at a 2
percent pace excluding food and energy. Prices gained 3.7 percent from a
year ago and rose 2.4 percent when food and energy costs are excluded.

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