Inflation cooled in June, helped by lower gas prices

The Labor Department reports the Consumer Price Index declined by 0.1% in June, the first decline in four years - UnSplash +

The Consumer Price Index fell 0.1%

Inflation largely disappeared from the economy in June. The Labor Department reports the Consumer Price Index (CPI) declined 0.1% in June, the first drop in the CPI in four years.

However, when food and energy costs are removed, the core CPI rose 0.1%. Over the last 12 months, the CPI is up 3%.

The index for gasoline fell 3.8% in June, after declining 3.6% in May, more than offsettingan increase in shelter. The energy index fell 2% over the month, as it did the preceding month.

Food prices continue to be mixed. The cost of eating at restaurants rose 0.4% but the cost of food consumed at home – a measure of grocery prices – rose by a more modest 0.1%

Here are the food prices that fell the most in June:

Cereal and cereal products-0.7%
Rice and pasta-1.9%
Beef steaks-1.5%
Bacon and sausage       -0.2%
Lunch meat            -1.0%
Lettuce            -1.9%

New and used vehicles also contributed to an improved inflation picture last month. New car prices were down 0.2% in June and are down 0.9% year-over-year. Used car prices are down even more, falling 1.5% in one month and are down a whopping 10.1% year-over-year.

But renters continued to face higher costs. Rent of primary residence rose 0.3% and is up 5% over the last 12 months. After dipping in May, car insurance rose 0.9% in June and is up nearly 20% over the last 12 months.

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