ARLINGTON, Va.—Overall consumer prices (seasonally adjusted) were unchanged in June after a 0.1% decrease in May, according to data analyzed in a new NAFCU Macro Data Flash report.
For the 12-month period, overall consumer price index growth decelerated to 1.6% — the lowest since last October, NAFCU reported.
Energy prices fell 1.6% in June following a 2.7% decrease in May. From a year ago, energy prices were up 2.4%. Food prices were unchanged in June following a 0.2% increase in May. On a year-over-year basis, food prices were up 0.9%.
Core prices (excluding food and energy costs) increased 0.1% in June compared to the previous month. Year-over-year core CPI growth remained at 1.7%.
"Consumer prices were unchanged in June according to data published by the Bureau of Labor Statistics," said NAFCU Chief Economist and Director of Research Curt Long. "The energy sector was a drag on growth for the second consecutive month. Gasoline prices fell 2.8% in June, while other energy components including electricity and natural gas also declined. Core inflation remained muted."
Apparel prices, airline fares and wireless telephone service costs continued to fall. Year-over-year CPI growth declined for the fourth straight month to 1.6%. Personal consumption expenditure inflation — the Federal Reserve’s preferred measure — also decelerated in May to 1.4%, Long said.
"Fed Chair Yellen noted earlier this week that the recent softening of inflation is likely due to transitory factors. However, a continued slide in price growth could result in a delay until 2018 for any rate moves," Long added.