Consumer Prices Drop as Gasoline Costs Less

U.S. inflation fell in June as gasoline prices retreated from early summer highs, but rising costs for a host of items including clothes and rent are keeping pressure on households and could complicate any efforts by policy makers to boost the economy.

Consumer prices fell a seasonally adjusted 0.2% in June from a month earlier, the first drop in a year and a reversal of the 0.2% increase the prior month, the government said Friday.

A measure of underlying or "core" inflation—watched closely by economists and the Federal Reserve because it strips out volatile energy and food prices—climbed by a monthly 0.3% in June, the same as the month earlier.

Behind the dip were falling prices for gasoline and other fuels: The energy index declined 4.4% in June, the biggest drop since December 2008.

Read Full Article from Wall Street Journal

- Posted: 2011-07-16 22:35:04

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