Consumer prices were unchanged in June after a decrease in May, according to a National Association of Federally-Insured Credit Unions (NAFCU) report that cited Bureau of Labor Statistics data, which also showed the energy sector weighed on growth.
The NAFCU’s Macro Data Flash Report determined overall consumer prices maintained consistency after a 0.1 percent May downturn. For the 12-month period, overall Consumer Price Index (CPI) growth decelerated to 1.6 percent, representing the lowest since last October.
“The energy sector was a drag on growth for the second consecutive month,” Curt Long, NAFCU chief economist and research director, said. “Gasoline prices fell 2.8 percent in June, while other energy components including electricity and natural gas also declined. Core inflation remained muted.”
Officials said energy prices fell 1.6 percent in June following a 2.7 percent decrease in May, while energy prices were up 2.4 percent from a year ago. Food prices were unchanged in June following a 0.2 percent increase in May. On a year-over-year basis, food prices were up 0.9 percent.
Apparel prices, airline fares and wireless telephone service costs continued to fall, as year-over-year CPI growth declined for the fourth straight month to 1.6 percent. Personal consumption expenditure inflation, which stands as the Federal Reserve’s preferred measure, also decelerated in May to 1.4 percent.
“Fed Chair (Janet) Yellen noted earlier this week that the recent softening of inflation is likely due to transitory factors,” Long said. “However, a continued slide in price growth could result in a delay until 2018 for any rate moves.”