Americans gain on CPI decline
By Jeannine Aversa |
July 17, 2010, Saturday
|
Print Edition
Print Edition
CONSUMER prices in the United States fell for the third straight month, providing some bargains to American shoppers.
The Consumer Price Index, the government's most closely watch inflation barometer, dipped 0.1 percent in June, the US Labor Department reported yesterday. Less expensive energy bills were a big factor behind the drop. Prices for some food items, airline fares, computers, telephone services and personal care products also fell last month.
So-called "core" consumer prices, which strip out volatile energy and food, rose 0.2 percent in June. That means core prices rose only 0.9 percent over the past year. That's below the Fed's inflation target and has core prices holding at a 44-year low.
Companies are wary of jacking up prices because consumers have cut their spending for two straight months. Factories and businesses are still operating well below full throttle.
The recent stretch of falling prices, both at the consumer and producer level, has stirred talks about deflation. It's a widespread and prolonged drop not only in the prices of goods at stores but also real estate, stocks and wages.
The Consumer Price Index, the government's most closely watch inflation barometer, dipped 0.1 percent in June, the US Labor Department reported yesterday. Less expensive energy bills were a big factor behind the drop. Prices for some food items, airline fares, computers, telephone services and personal care products also fell last month.
So-called "core" consumer prices, which strip out volatile energy and food, rose 0.2 percent in June. That means core prices rose only 0.9 percent over the past year. That's below the Fed's inflation target and has core prices holding at a 44-year low.
Companies are wary of jacking up prices because consumers have cut their spending for two straight months. Factories and businesses are still operating well below full throttle.
The recent stretch of falling prices, both at the consumer and producer level, has stirred talks about deflation. It's a widespread and prolonged drop not only in the prices of goods at stores but also real estate, stocks and wages.
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