Consumer Prices Flat in July

The Labor Department reported that consumer prices were flat for the second month in a row in July and that, over the last 12 months, the overall index rose just 1.4 percent, down from a year-over-year increase of 1.7 percent in June, the continuation of this recent trend possibly soon prompting Federal Reserve economists to again warn of another “unwelcome substantial fall in inflation”.

The energy price index fell 0.3 percent last month and is now down 5.0 percent from a year ago while food prices saw a modest 0.1 percent gain in July and are 2.3 percent higher than last year at this time.

Excluding food and energy, the consumer price index rose 0.1 percent, following a 0.2 percent gain in June, now up 2.1 percent on a year-over-year basis.