Core U.S. consumer prices rose 0.2 percent in June, continuing a steady march that has taken the year-on-year rate of nonfood, nonenergy inflation to 2.4 percent, its highest since September 2002, the Commerce Department said on Tuesday.
In the same report, the department said personal income rose 0.6 percent in June, with nominal spending up 0.4 percent.
The data, which was incorporated in a report released on Friday on second-quarter economic growth, matched expectations on Wall Street.
Overall inflation, as measured by a price index for consumer spending, also rose 0.2 percent in June as consumers enjoyed a respite after several months in which energy prices shot higher.
Inflation-adjusted spending rose 0.2 percent for the third straight month, while after-tax real income moved up 0.4 percent, the biggest gain since December.
Wage and salary income, which had been flat in May, rose 0.6 percent in June, before accounting for inflation.
The rise in income helped consumers to rely a little less heavily on their savings to keep spending, bringing the saving rate, saving as a percentage of disposable income, to a negative 1.5 percent from May's negative 1.6 percent.
The saving rate has been in negative territory for a 15 straight months.