Separate U.S. federal economic reports released Tuesday showed foreign demand for U.S. assets remained weak while the cost of domestic consumer goods rose to the highest level in four months. For the second consecutive month, the Treasury Department reported total foreign holdings of the Treasury\'s International Capital declined 0.5 percent to USD 5.68 trillion, following a 0.3 percent decline in April. Meanwhile, China, the largest buyer of Treasury debt, increased its holdings two percent to USD 1.32 trillion, after increasing its holdings by 1. 6 percent the previous month. Japan, the second-largest buyer, trimmed its holdings 0.2 percent to USD 1. 11 trillion in May. Overall, U.S. Treasury debt held by foreigners is up 7.8 percent from a year ago suggesting overseas demand for U.S. debt remains high. Separately, the Labor Department reported its Consumer Price Index (CPI), a measure of inflation, increased 0.5 percent in June, the largest jump since February spurred by a rise in fuel prices. That came as a surprise to economists, who predicted the report would show inflation accelerated 0.3 percent in June. Other indicators show inflation remains low over the long run. Compared to a year earlier, prices are up only 1.8 percent, a level that is considered low and consistent with a slow-growing economy. Separating out volatile gas and food prices shows core inflation was up only 1.6 percent over the last 12 months, the smallest annual change since June 2011. This level is consistent with another key measure of inflation, watched closely by the Federal Reserve, which shows core inflation has been around one percent recently. The central bank aims to keep inflation around two percent over the long-term.