PRICES RISE FOR FIFTH MONTH IN JUNE

WASHINGTON — Consumer prices rose in June for the fifth straight month and posted their f irst 12- month increase since December in a sign that extremely low inf lation might be abating.

The consumer price index increased 0.3% last month, in line with economists’ expectations. The figure was down from a 0.4% rise in May, the Labor Department said Friday.

Food prices were a major factor in June’s increase, rising 0.3% in large part because of sharply higher egg prices. An outbreak of avian f lu pushed egg prices up 18.3% last month, the largest jump since 1973.

Overall, food prices posted their biggest increase since September.

Gasoline prices rose 3.4%, the second straight monthly increase. Energy prices overall were up 1.7% in June.

Shelter, airline tickets and new vehicles also were among the sectors showing price increases.

June’s data continued a recent upward trend in prices after they had declined from November through January. Those decreases were driven by lower gasoline prices.

Rising prices in recent months helped push the annual inf lation rate up for the f irst time this year. Prices rose 0.1% for the 12 months that ended June 30.

So- called core inf lation, which excludes volatile food and energy prices, was 1.8% for the same period.

Federal Reserve policymakers are closely watching inf lation as they decide when to increase the central bank’s benchmark shortterm interest rate.

The Fed wants annual inf lation of 2%, though it uses a different measure based on personal consumption expenditures.