Consumer inflation rose to a high of 0.5% in June. The figures exceeded projections by economists who expected prices to hover around 0.3 % last month, a Reuters report said.

Rising prices of gas were largely blamed for the inflation, accounting for 2/3 of the increase in the Consumer Price Index. When energy and food are taken out of the equation, consumer prices still rose 0.2% for the second consecutive month.

During the survey, prices for new apparels, motor vehicles and home furnishings also registered an increase. This is in line with the US central bank's announcement to scrimp on the financial stimulus in September.

US Fed chair Ben Bernanke said last month that the central bank will scale down the US $85 billion in bonds that it buys each month in order to maintain the low borrowing costs. The central bank also expects consumer prices to increase even further.