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.


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