CPI Declines in August on Falling Energy Prices

Washington, DC, September 19, 2007—The consumer price index fell 0.1% in August as energy prices dropped for a third straight month, according to a report from the Labor Department.

The core index, which excludes food and energy prices rose 0.2%.

Analysts were expecting were the CPI to be unchanged in August and the core indes to rise 0.2%.

Over the past 12 months the CPI has risen 2%, the core index has risen 2.1%.

During the month energy prices fell 3.2%, gasoline prices declined 4.9% and natural gas prices fell 4.2%.

Food prices were up 0.4% in August and in the past year are up 4.3%.

Medical care costs rose 0.5% during the month and transportation prices fell 1.2%.