Weak consumer, capital goods curb US import prices

US import prices rose less than expected in June as rising costs for petroleum products were offset by declining consumer and capital goods prices, suggesting inflation could remain benign for a while.

The Labor Department said on Wednesday import prices increased 0.2 percent last month after an unrevised 1.4 percent jump in May. Economists polled by Reuters had forecast import prices rising 0.5 percent in June.

The modest increase likely reflects the lingering effects of the dollar's surge between June 2014 and December 2015, which continues to dampen imported inflation pressures and keep overall inflation below the Federal Reserve's 2 percent target.

US financial markets were little moved by the data. In the 12 months through June, import prices fell 4.8 percent, the smallest drop since November 2014.

Last month, imported petroleum prices rose 6.4 percent after soaring 16.3 percent in May.