U.S. consumer prices likely continued to climb swiftly in June, as the economic recovery gained steam and demand outpaced the supply of labor and materials.
Economists surveyed by The Wall Street Journal estimate that the Labor Department will report the consumer-price index increased 5% in June from a year ago, matching May’s increase and continuing the highest 12-month rate since 2008. The so-called core price index, which excludes the often-volatile categories of food and energy, likely rose 4% from a year before, they estimate.
The index measures what consumers pay for goods and services, including clothes, groceries, restaurant meals, recreational activities and vehicles. Economists also think it increased a seasonally adjusted 0.5% in June from May.
Consumers are seeing prices rise for numerous reasons, as the U.S. economic recovery picks up. Richard F. Moody, chief economist at Regions Financial Corp., said the…