June US Consumer Prices Declines More Than Expected, Year-Over-Year Rates Slow

The US seasonally adjusted consumer price index, a measure of inflation, fell by 0.4% in June, compared with expectations for a 0.1% decrease in a survey compiled as of 7:35 am ET and following a 0.5% increase in May, according to data released Tuesday by the Bureau of Labor Statistics. Core CPI, which excludes food and energy prices, held steady, compared with the consensus estimate for a 0.2% gain. Core CPI rose by 0.2% in May. Food prices increased by 0.2%, while energy prices were down 5.7%. Gasoline prices declined by 9.7%. Excluding only energy, CPI was flat in June after a 0.2% gain in May. Owners' equivalent rents increased by 0.2%, while regular rents increased by 0.1%. There were also notable declines in apparel, used vehicles, medical care commodities, medical care services, and transportation services. CPI excluding food, energy and shelter decreased by 0.1% after a 0.1% gain in the previous month. The year-over-year rates for overall and core CPI slowed to 3.5% and 2.6%, respectively, from 4.2% and 2.9% in the previous month. The monthly consumer price index, or CPI, reported by the Bureau of Labor Statistics, measures the index level of prices.