United States: Consumer prices unchanged in June
July 17, 2012
In June, consumer prices remained flat over the previous month in seasonally adjusted terms. The figure was up from the 0.3% drop recorded in May and matched market expectations. The figure mainly reflected how a large decline in energy prices was offset by higher prices for food. Annual headline inflation remained unchanged at May's 1.7%, its lowest level since January 2011. Meanwhile, the closely monitored core inflation index, which excludes food and energy, added 0.2% over the previous month, also matching market expectations. As a result, annual core inflation inched down from 2.3% in May to 2.2% in June. Annual average inflation over the previous 12 months moderated to 2.9% from 3.1% in May. The Federal Reserve expects PCE inflation (based on the price index for personal consumption expenditures) to average between 1.9% and 2.0% this year. For 2013, the Fed anticipates PCE inflation to range between 1.6% and 2.0%.