Used car prices, which were a major contributor to inflation last year, rose 1.6% from a month ago, while new vehicle prices increased 0.7%.
Higher prices continue to eat away at consumer incomes, despite strong nominal wage gains. Inflation-adjusted average hourly earnings dropped 3.6% in June from a year earlier, the 15th straight decline and largest in data back to 2007, separate data showed Wednesday. That’s started to impact spending -- inflation-adjusted consumer expenditures fell 0.4% in May, the first decline this year.
--With assistance from Chris Middleton and Sydney Maki.
This article was provided by Bloomberg News.