Consumer prices, retail sales up in June

Consumer prices rose modestly in June as the costs of gasoline and rent kept climbing, while sales at American retailers registered a healthy gain.

The Labor Department said Friday that consumer prices increased 0.2 percent last month, matching the gain in May.

The Fed, which meets July 26-27, wants to see evidence that inflation is ticking up before raising short-term U.S. interest rates again.

[...] Britain’s June 23 decision to leave the European Union has rattled financial markets and raised uncertainty about the global economy.

Separately Friday, the Commerce Department reported that retail sales posted a strong increase in June, another sign that consumer spending picked up in the spring.

“The Fed will welcome the continued strength in consumer spending and the latest positive jobs report,” Sal Guatieri, director of economic research at BMO Capital Markets, wrote in a research note, adding that the central bank is clearly in no rush to raise rates.