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.