June consumer prices record largest drop in a year

Reuters News
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Posted: Jul 15, 2011 8:44 AM
June consumer prices record largest drop in a year

WASHINGTON (Reuters) - Consumer prices fell slightly more than expected in June to post their biggest drop in a year on weak gasoline costs, government data showed on Friday, pointing to a cooling in commodity-driven inflation pressures.

The Labor Department said its Consumer Price Index fell 0.2 percent, the largest fall since June last year, after rising 0.2 percent in May. Economists polled by Reuters had expected prices to fall 0.1 percent.

But stripping out food and energy, core CPI rose 0.3 percent after a similar gain in May and above economists' expectations for a 0.2 percent increase.

(Reporting by Lucia Mutikani; Editing by Padraic Cassidy)