US Consumer Price Index Flat In June As Gas Prices Fall

Consumer prices in the U.S. were flat in June as the higher cost of food offset another drop in energy, according to government statistics released Tuesday, further confirming the Federal Reserve's view that the jump in fuel costs was only temporary.

The report, from the Labor Department, showed that the overall consumer price index, or CPI, remained unchanged in June after falling 0.3 percent in May, matching economists' estimate.

Energy prices decreased 1.4 percent from a month earlier, reflecting drops in gasoline, fuel oil and electricity. Food costs climbed 0.2 percent in June, driven by gains in meats, fruits and vegetables.

The so-called core measure, which strips out such volatile categories, rose 0.2 percent for a fourth month.

Consumer prices have risen an unadjusted 1.7 percent over the past 12 months, the same as in May. The core rate has increased 2.2 percent over the past 12 months, down from 2.3 percent. The government also reported that inflation-adjusted hourly wages, on average, rose 0.2 percent in June.