Consumer prices were unchanged in June, held down by cheaper gasoline. Outside the volatile food and energy categories, inflation was mild.þþThe Labor Department said Tuesday that gas prices fell in June by a seasonally adjusted 2 percent, the third-consecutive monthly decline. Food prices edged up 0.2 percent after a flat reading in May.þþOutside the volatile food and energy categories, so-called core prices rose 0.2 percent last month. It was the fourth-straight increase of that size.þþThe flat reading on overall prices comes after the Consumer Price Index fell 0.3 percent in May and was unchanged in April.þþMild price increases leave consumers with more money to spend, which spurs more growth. Lower inflation also gives the Federal Reserve room to start new programs intended to bolster the economy.
Source: NY Times
