WASHINGTON (MarketWatch) -- U.S. consumer prices rose a seasonally adjusted 0.7% in June, matching analysts' expectations, as gasoline prices jumped higher, the Labor Department reported Wednesday. In June, energy prices rose 7.4%, the largest gain since November 2007, as gasoline prices rose 17.3%, the largest jump since September 2005 following Hurricane Katrina. Meanwhile, food prices in June showed no change. The core CPI -- which excludes often-volatile food and energy prices -- rose a seasonally adjusted 0.2%. Economists surveyed by MarketWatch had expected the core to rise 0.1%. Some analysts have been concerned about the risk of deflation, with a weak labor market and consumer demand stripping companies' pricing power. The CPI has fallen 1.4% in the past year, the sharpest decline since January 1950. However, the core CPI is up 1.7% over the past year. In May, the overall CPI and the core each increased 0.1%. CPI details Prices of food purchased to consume at home were flat in June. Fruit and vegetable prices rose 1.1%, while meat prices fell 0.2%. Over the past year, food prices are up 2.1%. Inflation-adjusted weekly wages fell 1.2% last month, as hours worked dipped 0.3% and consumer prices gained. Shelter costs, which account for a third of the CPI, increased 0.1% in June. Ownership equivalent rent, the cost of owning a home, rose 0.1% in June, as did rents. Medical care costs increased 0.2% in June, as prices for prescription drugs rose 0.1%. Transportation prices showed a 4.2% increase, the biggest gain since September 2005. New vehicle prices rose 0.7%, while airfares fell 0.6%. Apparel prices rose 0.7%. And education and communication prices rose 0.2%. Ruth Mantell is a MarketWatch reporter based in Washington.

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