Overall prices have risen just 1.8 percent over the last 12 months. And core prices are up just 1.6 percent in that period - the smallest 12-month change in two years. Both measures are below the Fed's 2 percent inflation target.
Slow economic growth and high unemployment have kept wages from rising quickly. That has made it harder for retailers and other firms to raise prices.
Tame inflation has helped consumer increase spending this year despite slow income growth and higher Social Security taxes.
In June, prices for all energy products rose 3.4 percent mostly because of the surge in gasoline costs. Beyond that, other prices were little changed.
The gas price surge was driven by a jump in global oil prices, which reflected in part the political turmoil in Egypt. Chris G. Christopher Jr., director of consumer economics at Global Insight, said pump prices will likely fall once conditions stabilize in Egypt.
Food prices ticked up 0.2 percent. New-car prices increased 0.3 percent but are up just 1.3 percent over the last year. Clothing prices rose 0.9 percent in June but are up just 0.8 percent over the last 12 months. Prices for used cars fell 0.4 percent and are down 2.3 percent over the last year.
At its meeting in June, the Fed said it plans to keep the short-term interest rate it controls at a record low near zero until the unemployment rate falls below 6.5 percent, provided that inflation remains under control. Unemployment is 7.6 percent.