CPI Up in June But Shows Large Decline from '08

Washington, DC, July 15, 2009--The Consumer Price index rose more than expected in June but showed the largest year-over-year decline since January 1950, the government said Wednesday.

The index, the Labor Department's key measure of inflation, has fallen 1.4% over the past year.

That's the largest drop in more than 59 years, and is due largely to a 25.5% over-the-year decline in the energy index.

On a monthly basis, CPI rose 0.7% in June, after rising 0.1% the previous month. Economists expected a 0.6% increase.

That's the largest monthly increase in 11 months. CPI also rose 0.7% in July 2008.

The report attributed the month-to-month increase to the gasoline index, which rose 17.3% in June. But a decline of 1.9% in the electricity index helped offset the gas price jump, causing the overall energy index to settle up 7.4%.

The even more closely watched core CPI, which excludes volatile food and energy prices, increased 0.1% on an annual basis, after gaining the same amount in May. Core CPI increased 1.7% on an annual basis.