Consumer Prices Fall on Cheaper Gasoline

Washington, DC, July 15, 2011 -- Consumer prices fell in June to post their biggest drop in a year on lower gasoline costs.

The Consumer Price Index fell 0.2%, the Labor Department said on Friday, the largest drop since June 2010, after rising 0.2% in May. Economists had expected prices to fall 0.1%.

However, removing food and energy, core CPI rose 0.3% after a similar gain in May and above economists' expectations for a 0.2% increase.

Some analysts said core inflation is rising more than the Federal Reserve had expected.