Cost of living in US falls for first time in a year

Overall prices in the United States fell in June by 0.2 per cent, the first decline in a year thanks to the largest decrease in energy costs since 2008. But the overall inflation rate remained steady at a year-on-year rate of 3.6 per cent as costs for other items climbed, the Labour Department said Friday.
The 0.2-per-cent decline in the Consumer Price Index (CPI) was larger than the 0.1-per-cent drop expected by economists surveyed by Bloomberg news. In May, the CPI rose 0.2 per cent. Excluding volatile prices for food and energy, the so-called core index rose by 0.3 per cent for a second month, more than forecast and the largest back-to-back gain in three years.
Petrol prices dropped by a 6.8 per cent at a month-to-month rate in June, a sharp decline that was the major factor in reducing costs across the board. But over the past year, energy costs including household use have risen 20.1 per cent, which experts say has restrained economic recovery. Food costs rose by only 0.2 per cent, the lowest rise in a year.