US Consumer Prices Dip for Third Month

American consumers saw prices fall for the third consecutive month in June on the back of lower gasoline costs, the government said Thursday amid concerns over deflation.

The Labor Department said its consumer price index, the most closely watched inflation barometer in the United States, dropped 0.1 percent for the month after falling 0.2 percent in May, the largest decline since December 2008. On a year-over-year basis, consumer prices were up 1.1 percent in June.

Much of the decline was due to weaker gasoline prices. Food prices have remained unchanged for the past two months, according to the Labor Department data.

The core CPI, which excludes volatile food and energy prices and is closely watched by the central bank in considering interest rates, rose 0.2 percent, after a 0.1 percent climb in May.

US Consumer Prices Dip for Third Month, AFP
7/18/2010 9:02:14 PM