New York (CNN Business) The Fed may have to change its tune on inflation and potential rate cuts after a key report on consumer prices came in higher than expected.

Federal Reserve chair Jerome Powell told the House Financial Services Committee Wednesday that "there is a risk that weak inflation will be even more persistent than we currently anticipate."

But in the June Consumer Price Index data report Thursday morning, the US government said overall prices rose 0.1% in June while so-called core prices, which exclude food and energy, were up 0.3%.

The jump in core prices was the biggest monthly gain since January 2018. Core inflation is now up 2.1% over the past 12 months.

The government noted prices increased for housing, used cars and trucks, clothing, home furnishings, medical care and auto insurance among other categories.

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