Consumer Prices Unchanged in June

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rices paid by consumers remained static in June, reflecting lower energy prices compared with May, the Labor Department said Thursday.

The level followed a 0.1% drop in May, and the so-called “core” consumer price index for June, which excludes food and energy, rose 0.1%, the same as the previous month.

Analysts had predicted a 0.2% rise for both the CPI and core CPI, Bloomberg reported.

The CPI is the government's broadest gauge of costs for goods and services. Almost 60% of the CPI covers prices consumers pay for services. If consumer prices are falling, it could reflect a decrease in demand for consumer goods, which decreases the demand for trucking services.

Consumer prices are rising at an annual 3.1% rate this year, compared with a 4.7% increase at the same time last year. Core prices are rising at 2.2%, down from the 2.5% in the first six months of 2004.

Energy prices fell 0.5% in June after dropping 2% in May. Gasoline prices fell 1.2%.

Food prices, which account for about one-fifth of the index, rose 0.1% for a second straight month.

The cost of all goods, including automobiles, clothing and food, fell 0.2% in June, following a 0.4% slide in May, Labor said.