The Labor Department announced on Tuesday the U.S. consumer price index (CPI) rose 0.6 percent m-o-m in June, following an unrevised 0.1 percent m-o-m decline in the previous month. This was the first monthly increase in four months.

Over the last 12 months, the CPI also rose 0.6 percent y-o-y last month, following an unrevised 0.1 percent m-o-m gain in the 12 months through May. This was the highest reading since March.

Economists had forecast the CPI to gain 0.5 percent m-o-m and to increase 0.6 percent y-o-y in the 12-month period.

According to the report, the gasoline index rose sharply in June after recent declines and accounted for over half of the monthly gain in the seasonally adjusted all items index. The energy index surged 5.1 percent m-o-m in June as the gasoline index climbed 12.3 percent m-o-m. In addition, the food index rose 0.6 percent m-o-m in June.

Meanwhile, the core CPI excluding volatile food and fuel costs increased 0.2 percent m-o-m in June after a 0.1 percent m-o-m fall in the previous month. This was its first monthly increase since February.

In the 12 months through June, the core CPI rose 1.2 percent, the same pace as in the 12 months ending May. This remained the lowest rate since March 2011.

Economists had forecast the core CPI to edge up 0.1 percent m-o-m and to rise 1.1 percent y-o-y last month.