A customer checks out at a Wal-Mart Neighborhood Market store in Bentonville, Arkansas. Since 2008, the Fed has been trying to normalize U.S. monetary policy, and rising inflation means the economy is healthy and growing. Core CPI was up 1.8 percent from a year ago, accelerating slightly toward the Federal Reserve’s 2.0 percent target. The Labor Department reported consumer prices for June on Friday.

The core rate excluding eight volatile products accelerated to 2.3 percent, close to the March reading of 2.4 percent that was the fastest since 2008.

Economists anticipate that the housing market will mitigate the drag on the economy from a struggling manufacturing sector.

Canada’s annual inflation rate quickened in June as food and shelter costs increased and energy provided less of a drag.

But Fed Chair Janet Yellen told Congress this week there are indications those effects are beginning to ease. Economists surveyed by Bloomberg say Fed officials could announce an interest-rate increase as early as September.

The dollar rose to a session high against a basket of currencies on the data, while prices for US Treasuries fell. Over the past 12 months the main CPI has risen by an unadjusted 0.1%, the first time it’s shown a yearly increase since December.

The move matched economist expectations, according to Thomson Reuters.

After staying flat for two months, food prices rose by 0.3% in June driven mainly by a sharp increase in egg prices.

The pace of advances recorded by the “All Items less Farm Produce” or Core sub-index edged higher by 8.4 per cent during the month (year-on-year), marginally higher that the index in May, with the highest pressures observed in the Transportation, Education and Miscellaneous Good and Services divisions.

Energy prices rose 1.7% last month, but are still down 15% from a year earlier.

The Fed wants annual inflation of 2%, though it uses a different measure based on personal consumption expenditures.

Last month, gasoline prices increased 3.4 percent after jumping 10.4 percent in May. Egg prices surged 18.3 percent, the biggest gain since August 1973.